SBA disaster loan program activated in New York by drought

The U.S, Small Business Administration (SBA) announced federal Economic Injury Disaster Loans (EIDLs) are available in New York for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations with economic losses due to drought that began June 13, 2023.

The declaration includes the primary counties of Genesee and Wyoming, and the adjacent counties of Allegany, Cattaraugus, Erie, Livingston, Monroe, Niagara and Orleans.

"Working capital loans from the SBA are essential to eligible small businesses when the secretary of agriculture declares a disaster due to farmers' crop losses," said Francisco Sanchez Jr., associate administrator of BA's office of disaster recovery and resilience. "These loans help sustain rural economies when a disaster occurs."

A press release stated, “Under this declaration, the BA's EIDL program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster. Apart from aquaculture enterprises, BA cannot provide disaster loans to agricultural producers, farmers and ranchers. Nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.

“The loan amount can be up to $2 million with interest rates of 4% for small businesses and 2.375% for private nonprofit organizations, with terms up to 30 years. Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant's financial condition.

“Eligibility is based on the size of the applicant, type of activity and its financial resources. These working capital loans may be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.”

Applicants may apply online and receive additional disaster assistance information at www.SBA.gov/disaster. Applicants may also call SBA's customer service center at 800-659-2955 or email [email protected] for more information on BA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, dial 7-1-1 to access telecommunications relay services.

Submit completed loan applications to BA no later than Sept. 9, 2024.