Drought-related Economic Injury Disaster Loans
The U.S. Small Business Administration (SBA) announced that federal Economic Injury Disaster Loans are available in parts of Minnesota and adjacent counties in South Dakota for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations with economic losses due to drought that began Aug. 16.
The declaration includes Lincoln, Lyon, McLeod, Murray, Nicollet, Pipestone, Redwood, Rice and Wright counties in Minnesota; and the adjacent counties of Blue Earth, Brown, Carver, Cottonwood, Dakota, Dodge, Goodhue, Hennepin, Le Sueur, Meeker, Nobles, Renville, Rock, Scott, Sherburne, Sibley, Stearns, Steele, Waseca and Yellow Medicine in Minnesota; and Brookings, Deuel, Minnehaha and Moody in South Dakota.
“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to eligible entities, affected by the same disaster,” said Kem Fleming, director of SBA’s Field Operations Center East.
Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster. Apart from aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, and ranchers. Nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.
The loan amount can be up to $2 million with interest rates of 3.04 percent for small businesses and 1.875 percent for private nonprofit organizations, with terms up to 30 years.
Applicants may apply online using the Electronic Loan Application (ELA) via the SBA’s secure website at DisasterLoanAssistance.sba.gov/ela/s/ and should apply under SBA declaration # 17681.