The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Missouri about the approaching deadline for applying for federal disaster loans. These loans aim to offset economic losses caused by drought conditions that began on October 15, 2024. The deadline for applications is June 23.
This disaster declaration affects several counties in Missouri, including Barton, Bates, Cedar, St. Clair, and Vernon, as well as the Kansas counties of Bourbon, Crawford, and Linn.
Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have experienced financial losses due to the drought. However, agricultural producers such as farmers or ranchers are not eligible unless they operate small aquaculture enterprises.
EIDLs can be used for working capital needs resulting from the disaster and are available even if there was no physical damage to the business or organization. These loans may cover expenses such as fixed debts, payroll, accounts payable, and other bills affected by the disaster.
"Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover," said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "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 starting at 4% for small businesses and 3.25% for private nonprofits. The loan terms can extend up to 30 years. Interest does not accrue nor are payments required until 12 months after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant’s financial condition.
To apply online for these loans or obtain more information about SBA disaster assistance options, applicants can visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
Completed loan applications must be submitted no later than June 23.