SBA makes low-interest loans available for drought-affected small businesses | Local News
SIOUX CITY — The Small Business Administration is making available low-interest federal disaster loans of up to $2 million for small non-farm businesses in the tri-state area that have been hit by drought this spring.
The loans, which bear an interest rate of 2.94% for companies and 1.875% for private non-profit organizations and have a maximum term of 30 years, are intended to compensate for economic losses and the decline income resulting from the drought, starting April 15, according to an announcement. of the SBA.
According to US Drought Watch, most of Woodbury, Plymouth, Cherokee, and Buena Vista counties are currently in severe drought, as is all of Dakota, Dixon, Cedar, and most of Thurston counties in northeastern Nebraska, and most of Union and Clay counties in the southern southeast. Dakota. Portions of Monona, Sioux, Ida, Clay and a very small area in the severe drought region of Sac County, as well as parts of Wayne County, Nebraska and Yankton County, South Dakota.
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Most of the area that is not currently experiencing severe drought is either classified as moderate drought or abnormally dry.
The Small Business Administration makes economic disaster loans available when the United States Secretary of Agriculture designates an agricultural disaster. Agriculture Secretary Tom Vilsack declared an agricultural disaster on June 13.
Businesses that are primarily engaged in agriculture or ranching are not eligible for SBA disaster relief, the SBA said. (An exception to this rule is nurseries, which are eligible for SBA assistance.) Agricultural businesses should contact the Farm Services Agency regarding U.S. Department of Agriculture assistance made available by Vilsack’s statement. .
The following counties in South Dakota are covered by the program:
Union; Clay; Yankton; Hughes; Jones; Mellette; Potter; defile; Turner; Bennet; Fellow; Dewey; Edmonds; Faulk; Haakon; Huchinson; Hyde; Jackson; Lincoln; Lyman; McCook; Minnehaha; Stanley; Todd; Tripp; and Walworth.
The following counties in Iowa are covered by the program:
Plymouth, Sioux and Woodbury.
The following counties in Nebraska are covered by the program:
Cedar; Dakota; Dixon; and Knox.
Small non-agricultural businesses, small agricultural cooperatives, small businesses engaged in aquaculture, nurseries and most private non-profit organizations of any size may be eligible for economic disaster loans of up to $2 million. dollars to help meet financial obligations and expenses that could have been met had it not been for the catastrophic drought.
The deadline to apply for the loans is February 13, 2023.