SACRAMENTO, Calif. – Small nonfarm businesses in three California counties and neighboring counties in Arizona are now eligible to apply for low‑interest federal disaster loans from the U.S. Small Business Administration, announced Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration.
According to Sánchez, "SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster."
Small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations of any size may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.
"Eligibility for these loans is based on the financial impact of the disaster only and not on any actual property damage," reiterated Sánchez.
Furthermore, Sánchez highlighted the loan terms, stating, "These loans have an interest rate of 4 percent for businesses and 2.375 percent for private nonprofit organizations, a maximum term of 30 years and are available to small businesses and most private nonprofits without the financial ability to offset the adverse impact without hardship."
Interest on these loans does not begin to accrue until 12 months from the date of the initial disaster loan disbursement, with the repayment starting 12 months from the date of the first disbursement.
The U.S. Secretary of Agriculture designated an agricultural disaster on April 24, making Economic Injury Disaster Loans available through the SBA. Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance and are advised to contact the Farm Services Agency for assistance from the U.S. Department of Agriculture.
Interested applicants can apply online and find additional disaster assistance information at SBA.gov/disaster. Alternatively, they can contact SBA’s Customer Service Center at (800) 659-2955 or email [email protected] The deadline to apply for economic injury assistance is Dec. 24.