The U.S. Small Business Administration (SBA) has announced that eligible small businesses and private nonprofit organizations in Oklahoma have until June 16 to apply for federal disaster loans aimed at mitigating economic losses caused by the drought that began on October 8, 2024.
The SBA's disaster declaration includes numerous counties across Oklahoma, as well as specific areas in Arkansas, Kansas, Missouri, and Texas. These regions are eligible for the Economic Injury Disaster Loan (EIDL) program, which supports small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses linked to the drought. However, traditional agricultural producers such as farmers or ranchers are not eligible unless they operate small aquaculture enterprises.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, emphasized the importance of these loans: “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” he stated. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
EIDLs can be used for working capital needs resulting from the disaster without requiring physical damage to qualify. The funds may cover fixed debts, payrolls, accounts payable, and other bills unpaid due to the drought.
Loan amounts can reach up to $2 million with interest rates starting at 4% for small businesses and 3.25% for private nonprofits. Terms can extend up to 30 years. Notably, interest does not begin accruing until a year after the first loan disbursement.
Applications can be submitted online at sba.gov/disaster or through direct contact with SBA’s Customer Service Center via phone or email. Individuals who require telecommunications relay services should dial 7-1-1.
All completed loan applications must be submitted by June 16.