Small businesses can apply for drought-related loans

    Small nonfarm businesses in eight Nebraska counties and neighboring counties in Colorado and Kansas are now eligible to apply for low interest federal disaster loans from the U.S. Small Business Administration.
    Tanya Garfield, director of SBA’s Disaster Field Operations Center-West, said these loans offset economic losses because of reduced revenues caused by drought in the following primary counties that began Aug. 3.
    Primary Nebraska counties: Chase, Dundy, Hayes and Hitchcock;
    Neighboring Nebraska counties: Frontier, Lincoln, Perkins and Red Willow;
    Neighboring Colorado counties: Phillips and Yuma;
    Neighboring Kansas counties: Cheyenne and Rawlins.
    “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,” Garfield 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 to help meet financial obligations and operating expenses.
    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 2.855% for businesses and 2% for private nonprofit organizations, a maximum term of 30 years and are available to small businesses and most private nonprofits without the financial ability to offset the adverse impact without hardship, Garfield said.
    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 Sept. 24.
    Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance.
    Applicants may apply online, receive additional disaster assistance information and download applications at disasterloanassistance.sba.gov/.
    Applicants may also call SBA’s Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.
    The deadline to apply for is May 24, 2022.