The U.S. Small Business Administration (SBA) has issued a reminder for small businesses and private nonprofit organizations in South Dakota regarding the approaching June 2 deadline to apply for federal disaster loans. These loans are intended to help offset economic losses resulting from the drought that began on August 6, 2024.
The declaration has extended to several counties across South Dakota, Nebraska, North Dakota, and Wyoming, including South Dakota's Bennett, Butte, Corson, Custer, Fall River, Harding, Jackson, Lawrence, Meade, Oglala Lakota, Pennington, Perkins, and Ziebach counties. In Nebraska, the included counties are Cherry, Dawes, and Sheridan. North Dakota's Adams and Sioux counties, as well as Crook and Weston counties in Wyoming, are also part of the declaration.
Through this declaration, the SBA offers its Economic Injury Disaster Loan (EIDL) program. This program provides assistance to small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses directly connected to the disaster. However, the program does not extend disaster loans directly to agricultural producers, farmers, or ranchers, except to small aquaculture enterprises.
The EIDLs are intended to address working capital needs that have arisen due to the disaster. These loans are available even to businesses or PNPs that did not experience physical damage. They may be used to cover fixed debts, payroll, accounts payable, and other expenses not paid as a result of the disaster.
"Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover," stated Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters."
Eligible businesses can apply for loans up to $2 million, with interest rates as low as 4% for small businesses and 3.25% for PNPs. The loan term can be up to 30 years, with interest beginning to accrue and payments due 12 months from the date of the first loan disbursement. Loan amounts and terms are determined based on the financial condition of each applicant.
Interested parties can apply online at sba.gov/disaster. For further information about SBA disaster assistance, applicants may contact the SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Those with hearing or speech disabilities can use the 7-1-1 telecommunications relay service.
Completed loan applications must be submitted to the SBA by the June 2 deadline.