The U.S. Small Business Administration (SBA) wants to remind small businesses, small agricultural cooperatives, small businesses in aquaculture, and most private nonprofit organizations about the approaching deadline to apply for federal working capital loans for drought-related losses. The deadline for filing is July 22, 2024, for losses linked to the drought that began on November 14, 2023.
This declaration covers several Alabama counties, including Bibb, Calhoun, Chilton, Etowah, Greene, Hale, Shelby, St. Clair, and Talladega, as well as neighboring counties. Eligible entities, both farm-related and nonfarm-related, that suffered financial losses directly due to the drought can benefit from the SBA’s Economic Injury Disaster Loan (EIDL) program.
Loan amounts can reach up to $2 million with interest rates set at 4% for small businesses and 3.25% for private nonprofit organizations. Repayment terms can extend up to 30 years. These working capital loans can cover fixed debts, payroll, and other necessary expenses. However, they are not designed to replace lost sales or profits.
For those interested, applications can be submitted online at SBA.gov/disaster. If you need more information, you can contact the SBA’s Customer Service Center by calling (800) 659-2955 or emailing [email protected]. The deadline for submitting completed loan applications is July 22, 2024.
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