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 North Dakota affected by drought starting April 15. The announcement includes several counties in North Dakota, such as Billings, Burke, Burleigh, Divide, Dunn, Golden Valley, McHenry, McKenzie, McLean, Mercer, Mountrail, Oliver, Sheridan, Slope, Stark, Ward and Williams. It also covers the Montana counties of Richland, Roosevelt, Sheridan and Wibaux.
The SBA's Economic Injury Disaster Loan (EIDL) program is open to small businesses and private nonprofits with financial losses due to the drought. However, it does not extend to agricultural producers unless they are small aquaculture enterprises.
EIDLs provide working capital for businesses that have suffered economic loss but no physical damage. The loans can cover fixed debts and operational expenses like payroll and accounts payable.
Chris Stallings from the SBA’s Office of Disaster Recovery and Resilience stated: “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover.” He added that they are pleased to offer these loans to those impacted.
Loan amounts can reach up to $2 million with interest rates at 4% for small businesses and 3.62% for nonprofits over terms up to 30 years. Interest does not accrue nor are payments required until a year after the first loan disbursement. Loan amounts and terms depend on each applicant's financial condition.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Assistance is available through telecommunications relay services for those who need it by dialing 7-1-1.
The deadline for submitting completed loan applications is December 22.
The U.S. Small Business Administration aims to empower entrepreneurs through resources needed for business growth or recovery from disasters via its network of field offices and partnerships with public and private entities.