SBA Offering Low Interest Loans to Minnesota Small Businesses, Nonprofits Affected By Drought

(KNSI) – Loans are available to small businesses, small agricultural cooperatives, and private nonprofit organizations affected by the drought.

The U.S. Small Business Administration (SBA) announced they are accepting applications for the Economic Injury Disaster Loans (EIDL). The low-interest disaster loans are available in Stearns, Benton, Sherburne, Wright and Morrison County, and 26 other counties. They 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 farm-related and nonfarm-related entities that suffered financial losses directly from the drought. Apart from aquaculture enterprises, SBA cannot provide disaster loans to 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 2.88 percent for small businesses and 2 percent for private nonprofit organizations of all sizes, with terms up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity, and its financial resources.

Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.

The loans are not intended to replace lost sales or profits.

Officials say the drought started in Minnesota on May 19.

Applicants may apply online using the Electronic Loan Application (ELA).

Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by emailing DisasterCustomerService@sba.gov.

Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Submit completed loan applications to SBA no later than March 16, 2022.

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