Small nonfarm businesses in six Iowa counties and neighboring counties in Nebraska and South Dakota are now eligible to apply for low interest federal disaster loans from the U.S. Small Business Administration (SBA), according to Director Tanya N. Garfield with SBA’s Disaster Field Operations Center-West.
The loans offset economic losses because of reduced revenues caused by drought in Woodbury County that began on August 24. Woodbury County is the primary Iowa county in the announcement.
Neighboring Iowa counties are Cherokee, Crawford, Ida, Monona and Plymouth. Neighboring Nebraska counties are Dakota and Thurston.
A neighboring South Dakota county is Union.
“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster,” Garfield said.
Small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.
Eligibility for the loans is based on the financial impact of the disaster only and not on any actual property damage. The loans have an interest rate of 2.855% for businesses and 2% for private nonprofit organizations, a maximum term of 30 years and are available to small businesses and most private nonprofits without the financial ability to offset the adverse impact without hardship.
By law, SBA makes Economic Injury Disaster Loans available when the U.S. Secretary of Agriculture designates an agricultural disaster. The Secretary declared this disaster on August 27.
Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency about the U.S. Department of Agriculture assistance made available by the Secretary’s declaration. However, nurseries are eligible for SBA disaster assistance in drought disasters.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at 800-659-2955 or email firstname.lastname@example.org for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The deadline to apply for economic injury is April 27, 2022.