SBA Offers Low Interest Loans To Minnesota Small Businesses And Drought Affected Nonprofits
(KNSI) – Loans are available for small businesses, small agricultural cooperatives and private non-profit organizations affected by drought.
The US Small Business Administration (SBA) has announced that it is accepting applications for Economic Disaster Lending (EIDL). Low interest disaster loans are available in Stearns, Benton, Sherburne, Wright and Morrison counties and 26 other counties. These are Aitkin, Becker, Beltrami, Cass, Clay, Clearwater, Crow Wing, Douglas, Hubbard, Itasca, Kandiyohi, Kittson, Koochiching, Lake of the Woods, Mahnomen, Marshall, Meeker, Norman, Otter Tail, Pennington, Polk, Pope , Red Lake, Roseau, Todd and Wadena counties.
The SBA’s EIDL program is available to eligible agricultural and non-agricultural entities that have suffered financial losses directly due to the drought. Outside of aquaculture businesses, the SBA cannot provide disaster loans to farmers and ranchers. Nurseries are eligible to apply for economic disaster loans for losses caused by drought.
The loan amount can be up to $ 2 million with interest rates of 2.88% for small businesses and 2% for private nonprofits of all sizes, with terms of up to at 30 years old. The SBA determines eligibility based on the applicant’s size, type of activity, and financial resources.
The amounts and terms of the loan are set by the SBA and are based on the financial status of each applicant. These working capital loans can be used to pay off fixed debts, payroll, accounts payable and other bills that might have been paid had the disaster not occurred.
Loans are not intended to replace lost sales or profits.
Officials say the drought began in Minnesota on May 19.
Applicants can apply online using the Electronic Loan Application (ELA).
Disaster loan information and application forms can also be obtained by calling the SBA Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard of hearing) or by sending an email to [email protected]
Completed applications should be mailed to: US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Submit completed loan applications to the SBA by March 16, 2022.
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