The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations in South Dakota affected by drought starting April 15. This declaration includes several counties across South Dakota, Nebraska, and Wyoming.
The SBA's Economic Injury Disaster Loan (EIDL) program is open to small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have experienced financial losses due to the drought. However, agricultural producers, farmers, or ranchers are not eligible unless they are small aquaculture enterprises.
These EIDLs can be used for working capital needs caused by the disaster even if there was no physical damage to the business or nonprofit. The loans may cover fixed debts, payroll, accounts payable, and other bills impacted by the disaster.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said 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.”
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.625% for private nonprofits. Terms can extend up to 30 years with interest not accruing until 12 months after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster or through contact with SBA’s Customer Service Center via phone or email. Completed applications must be submitted by December 22.