SBA to help Ohio businesses affected by drought
The U.S. Small Business Administration (SBA) announced that federal Economic Injury Disaster Loans (EIDLs) are available in Ohio for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations with economic losses due to drought that began Aug. 20.
The declaration includes the primary counties of Athens, Belmont, Fairfield, Fayette, Gallia, Guernsey, Harrison, Highland, Hocking, Jackson, Jefferson, Madison, Monroe, Morgan, Muskingum, Noble, Perry, Pickaway, Pike, Ross, Vinton and Washington in Ohio, and the adjacent counties of Adams, Brown, Carroll, Champaign, Clark, Clinton, Columbiana, Coshocton, Franklin, Greene, Lawrence, Licking, Meigs, Scioto, Tuscarawas and Union in Ohio, and Brooke, Cabell, Hancock, Marshall, Mason, Ohio, Pleasants, Tyler, Wetzel and Wood in West Virginia.
“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 Sánchez, Jr., associate administrator for the SBA’s Office of Disaster Recovery and Resilience. “These loans help sustain rural economies when a disaster occurs.”
Under this declaration, the SBA’s Economic Injury Disaster Loan (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, SBA 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 percent for small businesses and 3.25 percent 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.
For information and to apply online visit SBA.gov/disaster. Applicants may also call the SBA’s Customer Service Center at (800) 6592955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
Submit completed loan applications to SBA no later than April 28, 2025.
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