Northwestern Iowa – Small non-farm businesses in O’Brien, Osceola and 16 other counties in Iowa and neighboring counties in Minnesota are now eligible to apply for low-rate federal loans disaster interest with the US Small Business Administration.
That of Director Tanya N. Garfield of the SBA West Disaster Field Operations Center. She says these loans compensate for economic losses due to reduced income caused by drought in those major counties that began on April 1, 2021 – Buena Vista, Dickinson, Emmet, Kossuth and Pocahontas;
She tells us that businesses in those counties neighboring Iowa are also eligible – O’Brien, Osceola, Calhoun, Cherokee, Clay, Hancock, Humboldt, Ida, Palo Alto, Sac, Webster, Winnebago, and Wright;
Businesses in Faribault, Jackson and Martin counties in Minnesota are also eligible.
Garfield says eligibility for the SBA covers both the economic impacts on businesses dependent on farmers and ranchers who suffered agricultural production losses caused by the disaster and on businesses directly affected by the disaster.
Small non-farm businesses, small farm cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations of any size may be eligible for economic disaster loans of up to $ 2 million. dollars to help meet financial obligations and operating expenses that might have been covered if a disaster did not occur.
She says eligibility for these loans is based solely on the financial impact of the disaster and not on actual property damage. These loans have an interest rate of 3% for businesses and 2% for private nonprofit organizations, with a maximum term of 30 years, and are available for small businesses and most private for-profit organizations. nonprofit without the financial capacity to offset the negative impact without difficulty, according to Garfield.
By law, the SBA makes economic disaster loans available when the US Secretary of Agriculture designates an agricultural disaster. The Secretary declared this disaster on June 22, 2021.
Businesses primarily engaged in agriculture or ranching are not eligible for SBA disaster assistance. Farm businesses should contact the Farm Services Agency regarding the U.S. Department of Agriculture assistance made available by the Secretary’s Statement. However, nurseries are eligible for disaster assistance from the SBA in the event of drought.
Applicants can apply online, receive additional information about disaster assistance, and download applications at https://disasterloanassistance.sba.gov/. Applicants can also call the SBA Customer Service Center at (800) 659-2955 or email [email protected] (link sends email) for more information on online support. SBA disaster event. People who are deaf or hard of hearing can call (800) 877-8339. Completed applications should be mailed to US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The deadline to submit an economic loss claim is February 22, 2022.