Deadline approaches in Nebraska for working capital loans due to drought
HASTINGS, Neb. (KSNB) - The U.S. Small Business Administration reminded small non-farm businesses in Nebraska and Colorado of the Feb. 13 deadline to apply for an SBA federal disaster loan for economic injury. These low-interest loans are to offset economic losses because of reduced revenues caused by drought in the following primary counties that began April 19, 2022.
Primary Nebraska counties: Adams, Clay, Deuel and Keith; neighboring Nebraska counties: Arthur, Buffalo, Cheyenne, Fillmore, Garden, Hall, Hamilton, Kearney, Lincoln, McPherson, Nuckolls, Perkins, Webster and York; neighboring Colorado county: Sedgwick.
According a SBA Spokesperson, small non-farm 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 Director Tanya N. Garfield of the U.S. Small Business Administration’s Disaster Field Operations Center-West. “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. Economic injury assistance is available regardless of whether the applicant suffered any property damage.”
The interest rate is 2.94% for businesses and 1.875% 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 13, 2022.
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, in drought disasters, nurseries are eligible for SBA disaster assistance.
Applicants may apply online, receive additional disaster assistance information and download applications here.
Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email for more information on SBA disaster assistance.
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