Final call for Nebraska drought-stricken business support loans

By Scout Nelson

The Small Business Administration (SBA) is issuing a final reminder to Nebraska's small nonfarm businesses in Gage, Johnson, Lancaster, Nemaha, Otoe, and Pawnee counties. The cutoff date to apply for federal disaster loans designed to counteract economic injuries from the 2023 drought in Johnson County is rapidly approaching on March 25, 2024.

Francisco Sánchez, Jr., from the SBA, underscores the importance of these loans in providing essential working capital for businesses grappling with reduced revenues due to the drought that began on May 30, 2023.

Eligible entities, including small nonfarm businesses, small agricultural cooperatives, aquaculture businesses, and private nonprofit organizations, may secure up to $2 million in Economic Injury Disaster Loans.

These loans are instrumental for covering operational expenses like fixed debts, payroll, and accounts payable that have become challenging due to the drought's effects.

Sánchez highlights that assistance is available to businesses both directly and indirectly affected by the drought, with or without property damage. Interest rates are set at 4 percent for businesses and 2.375 percent for private nonprofit organizations, with repayment terms extending up to 30 years based on the financial condition of the borrower.

Loan repayment commences 12 months following the first loan disbursement, offering businesses a grace period to stabilize their operations.

This disaster relief initiative was activated following the U.S. Secretary of Agriculture's declaration of an agricultural disaster on July 24, 2023.

It's important to note that while businesses primarily engaged in farming or ranching are not eligible for these SBA loans, they are encouraged to seek assistance from the Farm Services Agency. Nurseries, however, qualify for aid under this program in case of drought.

For detailed information or to apply, businesses can visit SBA.gov/disaster, call the SBA’s Customer Service Center at (800) 659-2955, or email disastercustomerservice@sba.gov.

Assistance is accessible for all, including individuals who are deaf, hard of hearing, or have a speech disability through telecommunications relay services by dialing 7-1-1.

Photo Credit -pexels-karolina-grabowska