Small non-farm businesses that feel they’ve been hurt by this year’s drought can apply for federal relief in Chelan and Okanogan counties.
The Small Business Administration announced Friday that a select group of businesses can apply for low interest federal disaster loans through the SBA. These loans are purposed to offset economic loses because of reduced revenues caused by drought that began June 18, 2019.
“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,” SBA Director Tanya 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 2.75 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.
The U.S. Secretary of Agriculture declared a disaster on Aug. 29 which resulted in the relief being made available.
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://disasterloan.sba.gov/ela
The deadline to apply for economic injury is April 29, 2020.