Businesses impacted by drought can apply for loans

Small nonfarm businesses impacted by drought in Maui County are now eligible to apply for low-interest federal disaster loans, the U.S. Small Business Administration said.

The loans offset economic losses due to reduced revenues caused by drought that began Jan. 1.

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,” said Director Tanya N. Garfield of SBA’s Disaster Field Operations Center-West. “These loans have an interest rate of 3 percent for businesses and 2 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.”

Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Service Agency about USDA assistance made available by the disaster declaration, SBA said. However, nurseries are eligible for SBA disaster assistance in droughts.

Applicants may apply online, receive additional disaster assistance information and download applications at disas terloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email dis astercustomerservice@sba.gov for more information. Individuals who are deaf or hard of hearing may call (800) 8778339.

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

The deadline to apply is Nov. 5.