The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in South Dakota about the approaching deadline to apply for federal disaster loans. These loans are intended to offset economic losses caused by drought starting on October 15, 2024.
The disaster declaration affects several counties in South Dakota, including Bennett, Jackson, Jones, Lyman, Mellette, Todd, and Tripp. Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is available to small businesses, 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.
These EIDLs can be used for working capital needs resulting from the disaster and can cover expenses like fixed debts and payroll even if no physical damage occurred. 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 that they are pleased to offer these loans to those affected.
Eligible applicants can receive up to $2 million with interest rates as low as 4% for small businesses and 3.25% for nonprofits over terms up to 30 years. The loan conditions depend on each applicant’s financial situation.
Interested parties should apply online at sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 for more information before June 23.