The U.S. Small Business Administration (SBA) reminds small businesses and private non-profit organizations in South Dakota of the upcoming May 27 deadline for applying for low-interest federal disaster loans. These loans aim to mitigate the economic losses resulting from severe weather events, including storms, straight-line winds, and flooding that occurred between June 16 and July 8, 2024.
The disaster declaration includes the South Dakota counties of Bon Homme, Clay, Hutchinson, McCook, and Yankton. Through this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses and private non-profits experiencing financial losses due to the disaster. The program excludes agricultural producers, farmers, and ranchers, except for aquaculture enterprises.
EIDLs serve to address working capital needs caused by the disaster and are available even if physical damage was not incurred by the small business or private nonprofit. These funds can cover fixed debts, payroll, accounts payable, and other bills that could not be paid as a result of the disaster.
Chris Stallings, the associate administrator of the Office of Disaster Recovery and Resilience at the SBA, stated, "SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery. These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."
Loan amounts can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.25% for non-profits, with repayment terms extending up to 30 years. Interest does not start to accrue, and payments are not due until 12 months from the first loan disbursement. Loan amounts and terms are determined by the SBA based on the applicant's financial situation.
Applications can be submitted online, and further disaster assistance information is available at sba.gov/disaster. Alternatively, applicants can contact the SBA's Customer Service Center by calling (800) 659-2955 or emailing disastercustomerservice@sba.gov. Individuals who are deaf, hard of hearing, or have a speech disability can utilize telecommunications relay services by dialing 7-1-1.
Loan applications must be submitted to the SBA by no later than May 27.