Small businesses impacted by drought eligible for loans

Small businesses in Maui and Kalawao counties that have suffered economic losses due to drought since Jan. 1 are now eligible to apply for low-interest federal disaster loans, the U.S. Small Business Administration announced Friday.

Small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofits of any size may qualify for economic injury disaster loans of up to $2 million to help meet financial obligations and operating expenses that could have been met if the drought had not occurred.

“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,” said Tanya Garfield, director of SBA’s Disaster Field Operations Center-West.

“Eligibility for these loans is based on the financial impact of the disaster only and not on any actual property damage,” Garfield added.

The loans have an interest rate of 3.3 percent for businesses and just under 2.4 percent for private nonprofits, with a maximum term of 30 years.

The loans are now available after the U.S. Secretary of Agriculture declared the situation a disaster on March 17.

Farming or ranching businesses are not eligible for the assistance but should contact the Farm Service Agency about available aid. Nurseries, however, are eligible for SBA disaster assistance in droughts.

For more information or to download an application, visit disasterloanassistance. sba.gov/. Or, contact SBA’s Customer Service Center at (800) 659-2955 or disastercustomerservice@sba.gov. Those who are deaf, hard of hearing or have a speech disability should dial 711 to access telecommunications relay services.

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

The deadline to apply is

Nov. 17.