SBA offering Economic Injury Disaster loans to South Dakota small businesses
SOUTH DAKOTA, — Small non-agricultural businesses are now eligible for low interest federal disaster loans from the U.S. Small Business Administration (SBA).
53 South Dakota Counties can now receive loans that offset economic losses because of diminished revenues that were caused by excessive moisture and flooding in certain South Dakota counties that started on Jan. 1, 2019.
The primary South Dakota counties include: Beadle, Bennett, Campbell, Corson, Custer, Day, Dewey, Edmunds, Fall River, Faulk, Haakon, Hughes, Jackson, Jerauld, Lake, Marshall, McCook, McPherson, Minnehaha, Moody, Oglala Lakota, Roberts, Sanborn, Spink, Stanley, Sully, Walworth and Ziebach.
Other neighboring South Dakota counties include: Aurora, Brookings, Brown, Brule, Buffalo, Clark, Codington, Davison, Grant, Hand, Hanson, Hutchinson, Hyde, Jones, Kingsbury, Lincoln, Lyman, Meade, Mellette, Miner, Pennington, Perkins, Potter, Todd and Turner.
The loans are for small businesses that are dependent on farmers or ranchers who suffered from losses due to excessive amounts of flooding and other disasters in South Dakota.
“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,” said Tanya N. Garfield, the Director of the SBA’S Disaster Field Operations Center-West.
Certain businesses that can qualify for Economic Injury Disaster Loans of up to $2 million include:
- Small non-agricultural businesses
- Small agriculture cooperatives
- Small businesses that engaged in aquaculture
- Most private non-profit organizations
The loans can be used to help meet financial obligations and for operating expenses which could have been met if not for the disasters.
“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 3.74 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.
By Law, the SBA makes Economic Injury Disaster Loans available when the U.S. Secretary of Agriculture designates an agricultural disaster, which was declared by the Secretary on April 13, 2020.
Businesses that are mostly Farming and Ranching oriented aren’t eligible for SBA disaster assistance from these loans.
Applicants can apply for the loans online or they can also call the SBA’s Customer Service Center at 1-800-659-2955. Applicants can also send at email to firstname.lastname@example.org for more information on the SBA disaster loans.
The deadline to apply for the economy injury loans is Dec. 14, 2020.