Federal drought disaster loans available to Northern Nevada small businesses
Submitted by Jeff Munson on Thu, 07/18/2013 - 5:39pm
The drought experienced this spring and summer has prompted the U.S. Small Business Administration to offer low-interest federal disaster loans to small, non-farm businesses in Carson City, Lyon County as well as Storey and Washoe counties.
These loans that must be applied for would offset economic losses because of reduced revenues caused by the drought experienced from May 20 to July 14, 2013, said Alfred E. Judd, director of SBA’s Disaster Field Operations Center ‑ West.
“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,” Judd 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 2.875 percent for private, nonprofit organizations, a maximum term of 30 years, and are available to small businesses and most private, non-profits without the financial ability to offset the adverse impact without hardship,” Judd said.
By law, SBA makes EIDLs available when the U. S. Secretary of Agriculture designates an agricultural disaster. Secretary Tom Vilsack declared this disaster on July 17, 2013.
Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Service Agency (FSA) about the U. S. Department of Agriculture (USDA) assistance made available by the Secretary’s declaration. However, in drought disasters nurseries are eligible for SBA disaster assistance.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure Web site here.
Information and application forms are also available from SBA’s Customer Service Center by calling (800) 659-2955, emailing disastercustomerservice@sba.gov, or visiting SBA’s Web site at www.sba.gov/services/disasterassistance.
Individuals who are deaf or hard-of-hearing may call (800) 877-8339.
The deadline to apply for these loans is March 17, 2014.
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