The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Kansas of the impending deadline to apply for federal disaster loans. These loans are aimed at addressing economic losses caused by the drought beginning on August 6, 2024. The affected Kansas counties include Decatur, Gove, Logan, Rawlins, Sheridan, Sherman, and Thomas.
The SBA’s Economic Injury Disaster Loan (EIDL) program is available under this declaration. Small businesses, small agricultural cooperatives, nurseries, and private nonprofits are eligible if their financial losses can be directly linked to the drought. However, agricultural producers, farmers, or ranchers, with the exception of small aquaculture enterprises, are not eligible for these disaster loans.
The EIDLs cover working capital losses due to the disaster and can be used for various financial obligations such as fixed debts and payroll. These loans are available even if no physical damage was suffered by the businesses or nonprofits.
Chris Stallings, the associate administrator of the Office of Disaster Recovery and Resilience at the SBA, stated, “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover."
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. The loans have terms of up to 30 years, and interest does not accrue until 12 months after the first disbursement. The SBA determines the loan amounts and terms based on the financial condition of each applicant.
To apply, visit sba.gov/disaster or contact the SBA Customer Service Center. Loan applications must be submitted by May 30.
The SBA, a federal agency, supports small businesses with resources and guidance, helping them to start, expand, and recover from disasters. More information can be found on their website, sba.gov.