Small businesses operating in areas of the US where agriculture ministers have declared drought disasters are eligible for a Disaster Economic Damage Loan (EIDL loan).
The Small Business Administration recently added a number of western states where small businesses may qualify for an EIDL loan due to drought. You can search by state and province to see if you’re in a drought-prone disaster area.
Some states and counties are recent declarations, and some continue as of 2021. You can still get an EIDL of a 2021 state drought declaration.
EIDL loans available for small businesses hit by drought
The current list of states where small businesses can qualify for an EIDL loan due to drought are:IdahoNorth DakotaNevadaOregonTexasUtahWashingtonNebraskaSouth DakotaHawaiiKansasLouisianaArizonaMississippiWyomingArkansasColoradoNew MexicoOklahomaCaliforniaIowaMontanaMinnesotaMaine
According to the National Weather Service’s U.S. drought monitoring, 47.5% of the U.S. is currently experiencing drought. More counties and states are expected to be added to the list.
Currently, there are 25 states on the list. In the drought of 2013, the list eventually included 34 states.
EIDL Amounts and Applications
EIDLs vary in quantity and duration. The biggest a small business can get is a 30 year loan up to $2 million with an interest rate of no more than 4%.
You can apply as follows:Apply online through the SBA website or by phone, 800-659-2955. You must sign IRS 4506-T as part of the application. The form allows the IRS to send copies of your tax returns to the SBA. An SBA inspector will come to your company and meet you. You wait 2-4 weeks for a decision. If approved, you will sign the paperwork, receive the money, and be matched with an SBA case manager.
Image: DepositphotosMore in: EIDL Loan
This post SBA EIDLs now available for small businesses hit by drought was original published at “https://smallbiztrends.com/2022/05/eidl-loans-available-to-small-businesses-affected-by-drought.html”