WASHINGTON – Small businesses and private nonprofit organizations affected economically by a September drought may be eligible to receive assistance through the U.S. Small Business Administration.
The SBA announced a disaster declaration that covers 13 counties in three states, including Belmont, Carroll, Columbiana, Harrison, Jefferson, Mahoning, Stark and Tuscarawas counties in Ohio; Beaver and Lawrence counties in Pennsylvania; and Brooke, Hancock, and Ohio counties in West Virginia.
The declaration allows eligible small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations with financial losses directly related to the drought to receive assistance through the SBA’s Economic Injury Disaster Loan program. The program cannot provide loans to agricultural producers, farmers or ranchers, except for aquaculture enterprises.
Loans can be up to $2 million, with interest rates as low as 4% for small businesses and 3.625% for private nonprofits. Loan terms can extend up to 30 years, and interest does not accrue until the first payment is due in 12 months from disbursement.
Loans can be used for working capital needs caused by the disaster, even if there is no physical damage. The loans can pay fixed debts, payroll, accounts payable and other bills left unpaid due to the disaster.
More information, as well as the application are available online or by calling 800-659-2955.