Small, non-farm businesses in 19 South Dakota counties– most in the central part of the state– are now eligible to apply for low-interest federal disaster loans from the US Small Business Administration. The US Secretary of Agriculture issued the drought disaster declaration May 13, 2022, triggering the loan eligibility.
These loans offset economic losses because of reduced revenues caused by drought that began May 10, 2022, in these primary counties: Dewey, Haakon, Jackson, Stanley and Ziebach. Neighboring counties where small business owners may also be eligible to apply are: Bennett, Corson, Hughes, Jones, Lyman, Meade, Mellette, Oglala Lakota, Pennington, Perkins, Potter, Sully, Todd and Walworth.
Eligibility covers both the businesses directly impacted by the disaster and the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the drought. 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 drought 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 2.935% for businesses and 1.875% 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.
The deadline to apply is Jan. 13, 2023.
Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance; However, nurseries are eligible for drought assistance. Those enterprises should contact their local Farm Service Agency about USDA assistance made available by the Secretary’s declaration.
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.
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