“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,” Sánchez 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. These loans help meet financial obligations and operating expenses that could have been met had the disaster not occurred.
“Eligibility for these loans is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4 percent for businesses and 3.25 percent for private nonprofit organizations, a maximum term of 30 years, and are available to small businesses and most private nonprofits that cannot offset the adverse impact without hardship,” Sánchez added.
Interest on these loans does not begin to accrue until 12 months from the date of the initial disbursement, with repayment starting 12 months after the first disbursement.
By law, the SBA offers Economic Injury Disaster Loans when the U.S. Secretary of Agriculture designates an agricultural disaster. This disaster was declared on June 17.
While businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance, agricultural enterprises should contact the Farm Services Agency for U.S. Department of Agriculture assistance. However, nurseries are eligible for SBA disaster assistance in drought situations.
Applicants can apply online and receive additional information at SBA.gov/disaster. For more assistance, applicants can also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Dialing 7-1-1 provides access to telecommunications relay services for individuals who are deaf, hard of hearing, or have a speech disability.
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