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 caused by drought beginning on October 15, 2024. The application deadline is set for June 23.
This disaster declaration affects several counties in Kansas: Bourbon, Butler, Chautauqua, Cherokee, Cowley, Crawford, Elk, Labette, Neosho, Sedgwick, and Sumner. Additionally, it includes the Missouri counties of Barton, Jasper, and Vernon and the Oklahoma counties of Kay and Osage.
Eligible entities under this declaration include small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have suffered financial losses due to the drought. However, the SBA's Economic Injury Disaster Loan (EIDL) program does not extend to agricultural producers such as farmers or ranchers unless they are involved in small aquaculture enterprises.
EIDLs provide working capital for those impacted by the disaster. They can be used for various purposes including paying fixed debts and payroll. Importantly, these loans are available even if there was no physical damage to the business or organization.
"Through a declaration by the U.S. Secretary of Agriculture," stated Chris Stallings from the SBA’s Office of Disaster Recovery and Resilience. "We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters."
The loan amount can reach up to $2 million with interest rates starting at 4% for small businesses and 3.25% for nonprofits over terms up to 30 years. No interest accrues nor are payments due until one year after the first loan disbursement. Loan amounts and terms depend on each applicant’s financial situation.
For online applications or more information on SBA disaster assistance options, individuals can visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available through dialing 7-1-1 for those who need them.
Completed applications must be submitted before June 23.