The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Arkansas regarding the approaching deadline to apply for federal disaster loans. These loans are intended to mitigate economic losses caused by the drought that began on October 8, 2024. The application deadline is June 16.
This disaster declaration encompasses several counties in Arkansas, including Benton, Boone, Carroll, Crawford, Franklin, Johnson, Madison, Marion, Newton, Searcy, and Washington. It also includes Missouri counties Barry, McDonald, Stone, and Taney as well as Oklahoma counties Adair and Delaware.
The SBA's Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, nurseries, and private nonprofits experiencing financial losses due to the drought. However, agricultural producers such as farmers or ranchers are not eligible unless they operate small aquaculture enterprises.
These EIDLs can be used for working capital needs stemming from the disaster. They may cover expenses like fixed debts, payroll obligations, accounts payable, and other bills that remain unpaid because of the drought's impact.
Chris Stallings of the SBA stated: “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover.” He added: “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 set at 4% for small businesses and 3.25% for private nonprofits. The repayment terms can extend up to 30 years. Notably, interest does not accrue nor are payments required until one year after the first loan disbursement. The specific loan amount and terms will depend on each applicant’s financial situation.
Interested parties can apply online at sba.gov/disaster or contact SBA’s Customer Service Center via phone or email for more information about disaster assistance options.
Applications must be submitted by June 16.