The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Kansas of the approaching deadline to apply for federal disaster loans. These loans aim to offset economic losses due to the drought that began on October 8, 2024. The deadline for applications is June 16.
The disaster declaration affects several counties: Cherokee, Crawford, Labette, Montgomery, and Neosho in Kansas; Jasper and Newton in Missouri; and Craig, Nowata, and Ottawa in Oklahoma.
Eligible entities under this declaration can access the SBA’s Economic Injury Disaster Loan (EIDL) program. This program supports small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have experienced financial losses directly related to the drought. However, it does not extend to agricultural producers, farmers, or ranchers unless they are small aquaculture enterprises.
EIDLs provide working capital for needs arising from the disaster. They can be used for expenses such as fixed debts, payroll, accounts payable, and other bills disrupted by the drought. Importantly, these loans are available even if no physical damage occurred.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA 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 support to those impacted by these disasters.
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. Terms can extend up to 30 years. Interest does not accrue until one year after the first loan disbursement.
Applications can be submitted online at sba.gov/disaster or through contact with SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for individuals who are deaf or hard of hearing.
All completed loan applications must be submitted by June 16.