SBA loans available to drought-impacted counties
SACRAMENTO, Ca. (KIFI)-The Small Business Administration has announced that seven Idaho counties have qualified for working capital loans due to drought conditions last year.
SBA Field Operations Center Director Tanya N. Garfield said non-farm businesses dependent on farmers and ranchers in Butte County and neighboring Bingham, Blaine, Clark, Custer, Jefferson, and Lemhi Counties have until February 16, 2021 to apply for an SBA federal disaster loan for economic injury.
The loans are intended to offset losses caused by reduced revenues due to drought in Butte County that began April 15, 2020.
According to Garfield, small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may apply for Economic Injury Disaster Loans of up to $2 million to help meet working capital needs caused by the disaster. “Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact,” said Garfield.
The interest rate is 3.75 percent for businesses and 2.75 percent for private nonprofit organizations with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
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 June 16, 2020.
Businesses that are primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Their losses are covered through other agencies, like the Farm Services Agency or USDA.
More information is available online.
