The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in North Dakota of the approaching deadline to apply for federal disaster loans due to economic losses from the drought that began on October 1, 2024. The deadline for applications is June 9.
The disaster declaration includes several counties across North Dakota, Montana, and South Dakota. In North Dakota, affected counties are Adams, Billings, Bowman, Burke, Divide, Golden Valley, Grant, Hettinger, McKenzie, Mountrail, Sioux, Slope, Stark and Williams. In Montana and South Dakota respectively: Fallon, Richland, Roosevelt and Sheridan; Corson, Harding and Perkins.
Under this declaration by the U.S. Secretary of Agriculture, SBA's Economic Injury Disaster Loan (EIDL) program is available to small businesses and private nonprofits with financial losses related to the drought. However, agricultural producers such as farmers or ranchers are not eligible unless they are small aquaculture enterprises.
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 loans to those impacted by these disasters.
The EIDLs can be used for working capital needs caused by the disaster including fixed debts and payroll among others. Loans can reach up to $2 million with interest rates starting at 4% for small businesses and 3.25% for PNPs over terms up to 30 years. Interest does not accrue nor payments required until a year after disbursement begins.
Applications can be submitted online at sba.gov/disaster or through contact with SBA’s Customer Service Center via phone or email provided in their communications. Completed loan applications must be submitted by June 9.