The U.S. Small Business Administration (SBA) has announced a reminder concerning the approaching deadline for small businesses and private nonprofit organizations in Indiana affected by the drought that began on September 24, 2024. Businesses have until May 30 to apply for low-interest federal disaster loans aimed at mitigating economic losses.
This disaster declaration encompasses several counties, including Dearborn, Decatur, Fayette, Franklin, Jefferson, Jennings, Ohio, Ripley, Rush, Switzerland, and Union in Indiana. It also includes Boone County in Kentucky, as well as Butler and Hamilton counties in Ohio.
The SBA's Economic Injury Disaster Loan (EIDL) program is specifically available to entities such as small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have faced financial setbacks due to the drought. However, the SBA noted it cannot extend disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
EIDLs are intended to address working capital needs resulting from the disaster, even when no physical damage is sustained. Loan funds may be used for several purposes such as paying off fixed debts, payroll, accounts payable, and other outstanding bills related to the disaster.
Chris Stallings, the associate administrator of the SBA’s Office of Disaster Recovery and Resilience, explained, “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover. We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
These loans can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.25% for private nonprofits and terms extending up to 30 years. Notably, interest accrual and payment obligations are deferred until a full year after the first loan disbursement. Loan amounts and terms are tailored to each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster. Additional information is available by contacting the SBA’s Customer Service Center at (800) 659-2955 or by emailing disastercustomerservice@sba.gov. Telecommunications relay services are accessible by dialing 7-1-1 for individuals who are deaf, hard of hearing, or have a speech disability.
The deadline for submitting economic injury applications is May 30, 2025.
SBA supports the federal government’s mission to assist small businesses, providing resources needed to start, grow, or recover from declared disasters.###