The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Virginia about the approaching deadline of July 15 to apply for low-interest federal disaster loans. These loans aim to offset economic losses caused by drought and excessive heat that occurred on April 16, 2024.
This disaster declaration affects numerous counties across Virginia, including Accomack, Albemarle, Alleghany, Amelia, Amherst, Appomattox, Augusta, Bath, Bedford City and County, Bland, Botetourt, Bristol, Brunswick, Buchanan, Buckingham, Buena Vista, Campbell and many others. The declaration also covers areas in Kentucky (Harlan, Letcher and Pike), Maryland (Charles, Somerset, St. Mary’s and Worcester), North Carolina (Alleghany and several other counties), Tennessee (Johnson and Sullivan) as well as West Virginia (McDowell and additional counties).
Under this declaration the SBA's Economic Injury Disaster Loan (EIDL) program is available to small businesses such as agricultural cooperatives or nurseries with financial losses directly related to the disaster. However the SBA cannot provide these loans to agricultural producers like farmers or ranchers except for small aquaculture enterprises.
EIDLs are intended for working capital needs caused by the disaster even if no physical damage was suffered by the business or nonprofit organization. They can be used for paying fixed debts payroll accounts payable and other bills not covered due to the disaster.
"Through a declaration by the U.S. Secretary of Agriculture SBA provides critical financial assistance to help communities recover," stated 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 starting at 4% for small businesses and 3.25% for PNPs over terms up to 30 years. Interest does not accrue nor are payments due until 12 months from when the first loan disbursement occurs. Loan amounts and terms depend on each applicant's financial condition.
For applications visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance options available before returning economic injury applications by July 15th.