The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Oklahoma about the approaching deadline for applying for federal disaster loans. These loans are intended to offset economic losses due to drought conditions that began on September 3, 2024.
This declaration affects several counties in Oklahoma, including Beaver, Dewey, Ellis, Harper, Roger Mills, and Woodward. Additionally, it includes the Texas counties of Hemphill and Lipscomb.
The SBA's Economic Injury Disaster Loan (EIDL) program is available under this declaration. It is designed for small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have experienced financial losses directly related to the drought. However, the SBA cannot provide disaster loans to agricultural producers such as farmers or ranchers unless they are small aquaculture enterprises.
These EIDLs can be used for working capital needs resulting from the disaster. They can cover fixed debts, payroll expenses, accounts payable, and other bills that could not be paid due to the drought's impact. Physical damage is not a requirement for eligibility.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA stated: “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover.” He added: “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 as low as 4% for small businesses and 3.25% for private nonprofits. The terms can extend up to 30 years with no interest accruing or payments required until one year after the first loan disbursement date. The SBA determines loan amounts and terms based on each applicant’s financial situation.
Interested parties can apply online at sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov for further information on disaster assistance options. 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 by June 30.