By Scout Nelson
The U.S. Small Business Administration (SBA) is inviting Kansas businesses impacted by the 2024 drought to apply for Economic Injury Disaster Loans (EIDLs). The drought, which began on May 14, affected Hodgeman, Pawnee, and adjacent counties, leaving many businesses in financial distress.
Eligibility and Loan Details:
EIDLs are designed for nonfarm-related and eligible farm-related entities that experienced economic losses due to the drought. Nurseries are also eligible for support under this program. These loans can be used to cover expenses like fixed debts, payroll, and accounts payable.
Francisco Sánchez, Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA, emphasized the importance of these loans, saying, “SBA working capital loans become a lifeline for eligible small businesses. These loans help rural communities recover and thrive after challenges strike.”
Loan specifics include:
- Maximum loan amount: $2 million
- Interest rates: 4% for small businesses, 3.25% for nonprofit organizations
- Loan terms: Up to 30 years
- Payment deferral: No interest accrual or payments required for the first 12 months
Funding Update:
As of October 15, 2024, funds for the Disaster Loan Program have been fully utilized. However, SBA continues to accept applications to prepare for potential future funding.
Application Process:
Applicants are encouraged to submit applications promptly for review. For further assistance, businesses can visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955.
This initiative ensures Kansas businesses have access to critical resources to rebuild and sustain operations amidst ongoing recovery efforts. Applications close January 21, 2025.
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Categories: Kansas, Business, Government & Policy