SBA Disaster Loans Available to Nebraska Small Businesses

Small, nonfarm businesses in all Nebraska counties except Richardson county are eligible to apply for low-interest federal disaster loans from the US Small Business Administration (SBA). The loans offset economic losses due to reduced revenues caused by drought conditions.

“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers who have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster,” according to Alfred Judd, spokesman for the SBA.

Small, nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private, nonprofit organizations of any size may qualify for Economic Injury Disaster Loans (EIDLs). These loans are up to $2 million and are intended to help meet financial obligations and operating expenses that could have been met had the disaster not occurred.

“Eligibility for these loans is based on the financial impact of the disaster only and not on any actual property damage. The loans have an interest rate of 4% for businesses and 2.875% for private, nonprofit organizations; a maximum term of 30 years; and are available to small businesses and most private, nonprofits without the financial ability to offset the adverse impact without hardship,” said Judd.

By law, SBA makes EIDLs available when the US Secretary of Agriculture designates an agricultural disaster. Secretary Tom Vilsack declared this disaster on April 10, 2013.

Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance.  Agricultural enterprises should contact the Farm Service Agency (FSA) about USDA assistance made available by the Secretary’s declaration. However, in drought disasters nurseries are eligible for SBA disaster assistance.

Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website
 
Information and application forms are also available from SBA’s Customer Service Center by calling 800.659.2955 or emailing disastercustomerservice@sba.gov .

The deadline to apply for these loans is December 10, 2013.