The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Pennsylvania about the upcoming deadline to apply for federal disaster loans related to drought conditions. These low-interest loans aim to help offset economic losses due to the drought that began on November 19, 2024.
The disaster declaration affects several counties, including Chester, Delaware, Montgomery, and Philadelphia in Pennsylvania; New Castle County in Delaware; and Gloucester County in New Jersey.
According to the SBA’s Economic Injury Disaster Loan (EIDL) program, eligible entities such as small businesses, small agricultural cooperatives, nurseries, and private nonprofits can access financial assistance if they have experienced economic setbacks directly linked to the disaster. However, the SBA notes that it cannot provide loans directly to agricultural producers like farmers or ranchers unless they are small aquaculture enterprises.
These EIDLs are intended for working capital needs stemming from the disaster's impact and can be utilized even if no physical damage occurred. The funds may cover expenses such as fixed debts, payroll, accounts payable, and other outstanding bills.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “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 set at 4% for small businesses and 3.62% for PNPs. The terms extend up to 30 years with interest not accruing nor payments due until 12 months after the initial loan disbursement. The SBA determines loan amounts based on each applicant's financial status.
Interested applicants can apply online at sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for further information on disaster assistance programs. For individuals who are deaf or hard of hearing or have speech disabilities, telecommunications relay services are available by dialing 7-1-1.
The deadline for submitting economic injury applications is July 25, 2025.