SBA Offering Small Business Loans In Several Lake Area Counties Due To Ongoing Drought

If you own a business in the Lake Region, you may be eligible for some assistance with the ongoing drought.

According to the US Small Business Administration, Federal Disaster relief loans are being offered to small non-farm businesses owners across 46 Missouri Counties, including several here in the Lake Region.

The loans are low interest from the SBA and help offset any economic losses due to the drought that started back in May.

Officials say business owners may qualify for up to $2 Million Dollars in assistance at a rate of 4% for commercial and 2.375% for non-profits.

Farms and Ranches, with the exception of Nurseries, are not eligible for the assistance through the SBA.

If you are a farmer, you can contact the Farm Services Agency or the USDA for assistance.

Full details can be seen below:

Small nonfarm businesses in 46 Missouri counties and neighboring counties in Illinois, Iowa and Kansas are now eligible to apply for low interest federal disaster loans from the U.S. Small Business Administration, announced Director Tanya N. Garfield of SBA’s Disaster Field Operations Center-West. These loans offset economic losses because of reduced revenues caused by drought in the following primary counties that began May 2.

Primary Missouri counties:  Bates, Camden, Cass, Macon, Maries, Marion, Monroe, Pike, Putnam, Ralls, Randolph, St. Clair, Shelby, Sullivan and Warren;
Neighboring Missouri counties:  Adair, Audrain, Benton, Boone, Cedar, Chariton, Dallas, Franklin, Gasconade, Grundy, Henry, Hickory, Howard, Jackson, Johnson, Knox, Laclede, Lewis, Lincoln, Linn, Mercer, Miller, Montgomery, Morgan, Osage, Phelps, Polk, Pulaski, St. Charles, Schuyler and Vernon;

“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 which 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 2.375 percent 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 June 26.

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, nurseries are eligible for SBA disaster assistance in drought disasters.

Applicants may apply online, receive additional disaster assistance information and download applications at https://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. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX  76155.

The deadline to apply for economic injury is Feb. 26, 2024.