The U.S. Small Business Administration (SBA) has announced that low-interest federal disaster loans are now available to small businesses and private nonprofit organizations in Florida affected by the drought that began on March 11. This announcement covers several counties, including Alachua, Bradford, Brevard, Charlotte, Citrus, Clay, Collier, Flagler, Glades, Hendry, Hernando, Lake, Lee, Levy, Marion, Orange, Osceola, Polk, Putnam, Seminole, St. Johns, Sumter and Volusia.
Eligible entities under this declaration can access the SBA’s Economic Injury Disaster Loan (EIDL) program. The program is designed for small businesses and nonprofits with financial losses directly related to the drought. However, it excludes agricultural producers unless they are aquaculture enterprises.
EIDLs aim to meet working capital needs resulting from the disaster and can be used for fixed debts and other expenses even if there is no physical damage. "Through a declaration by the U.S. Secretary of Agriculture," Chris Stallings from the SBA stated that "SBA provides critical financial assistance to help communities recover."
Loans can reach up to $2 million with interest rates starting at 4% for small businesses and 3.62% for nonprofits. Terms extend up to 30 years without accruing interest or requiring payments until a year after disbursement begins.
Applications can be submitted online via sba.gov/disaster or through contact with SBA's Customer Service Center at (800) 659-2955 or disastercustomerservice@sba.gov. Those who are deaf or hard of hearing should use telecommunications relay services by dialing 7-1-1.
The deadline for economic injury applications is January 5th of next year.
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