The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Missouri of the upcoming deadline to apply for federal disaster loans. The loans aim to offset economic losses caused by drought beginning October 29, 2024. Eligible entities have until July 7, 2025, to submit their applications.
This declaration includes numerous counties in Missouri, such as Barton, Bates, Benton, Callaway, Camden, Cass, Cedar, Christian, Cole, Dade, Dallas, Douglas, Gasconade, Greene, Henry, Hickory, Howell, Jackson, Johnson, Laclede, Lafayette, Lawrence, Maries and others. Additionally covered are the Kansas counties of Johnson and Miami.
Under this program known as the Economic Injury Disaster Loan (EIDL), small businesses and private nonprofits can access financial support if they have experienced financial losses directly related to the drought. However, agricultural producers such as farmers and ranchers are generally not eligible unless they operate small aquaculture enterprises.
These EIDLs address working capital needs resulting from the disaster and can be used for fixed debts like payroll or accounts payable. Importantly they do not require any physical damage to have occurred for eligibility.
“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.”
Loan amounts can reach up to $2 million with interest rates starting at 4% for small businesses and 3.62% for PNPs over terms extending up to 30 years. Interest does not accrue nor are payments due until one year after the initial loan disbursement date. Loan amounts and terms depend on each applicant's financial condition.
Interested applicants can apply online via sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 for more information on disaster assistance options available through SBA.