Help is available to some organizations in our area following a dry stretch this year.
The U.S. Small Business Administration is offering low-interest federal disaster loans to businesses and private nonprofit (PNP) organizations that sustained economic losses caused by drought.
The loans come through the SBA’s Economic Injury Disaster Loan program.
The SBA lists two disaster declarations under which eligible small businesses, small business cooperatives, nurseries and PNPs are eligible for EIDL loans.
One is for a drought that began Sept. 16 and covers Allegheny, Beaver, Butler, Fayette, Greene, Lawrence, Washington and Westmoreland counties.
The other is for a drought that began Sept. 23 and covers Fayette, Greene and Washington counties.
Loans are not available for agricultural producers, farmers or ranchers, except for aquaculture enterprises.
EIDLs can be used for working capital needs caused by disaster and are available even if the organization didn’t suffer any physical damage, the SBA says.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
With terms up to 30 years, the loans can be up to $2 million, with interest rates as low as 4% for small businesses and 3.625% for PNPs. Interest doesn’t accrue, and payment is due a year from the first loan disbursement.
The deadline to return economic injury applications for the Sept. 16 disaster declaration is May 26.
The deadline for the Sept. 23 declaration is June 1.
Click here to apply for a loan. You can also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information.
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