Small businesses in Missouri counties affected by drought now eligible for federal disaster loans

Small nonfarm businesses in 46 counties across Missouri, as well as neighboring counties in Illinois, Iowa, and Kansas, have been declared eligible to apply for low-interest federal disaster loans. This announcement was made by Tanya N. Garfield, Director of the U.S. Small Business Administration's Disaster Field Operations Center-West. The loans are aimed at mitigating economic losses resulting from reduced revenues caused by an ongoing drought in these areas, which began on May 2.

The primary Missouri counties eligible for assistance include Bates, Camden, Cass, Macon, Maries, Marion, Monroe, Pike, Putnam, Ralls, Randolph, St. Clair, Shelby, Sullivan, Vernon, and Warren.

According to Garfield, the scope of SBA eligibility covers businesses dependent on farmers and ranchers facing agricultural production losses caused by the disaster, as well as businesses directly impacted by the drought. Small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations of any size are potentially eligible for Economic Injury Disaster Loans of up to $2 million. These loans are intended to help meet financial obligations and operating expenses that would have been manageable under normal circumstances.

"It's important to note that eligibility for these loans is based solely on the financial impact of the disaster and not on any actual property damage," emphasized Garfield. "The loans feature an interest rate of 4 percent for businesses and 2.375 percent for private nonprofit organizations. They come with a maximum term of 30 years and are available to small businesses and most private nonprofits that lack the financial ability to overcome the adverse impact without hardship."

The availability of Economic Injury Disaster Loans is triggered when the U.S. Secretary of Agriculture designates an agricultural disaster, as was done on June 26 in response to the current situation. However, it is essential to clarify that businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Such agricultural enterprises should seek assistance from the Farm Services Agency regarding the resources made available through the U.S. Department of Agriculture in response to the Secretary’s declaration. Nurseries, on the other hand, are eligible for SBA disaster assistance in cases of drought disasters.

Interested applicants can apply online, access additional disaster assistance information, and download applications via the official website: https://disasterloanassistance.sba.gov/. Those seeking more information on SBA disaster assistance can contact the Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Individuals who are deaf, hard of hearing, or have speech disabilities can access telecommunications relay services by dialing 7-1-1. Completed applications should be mailed to the U.S. Small Business Administration, Processing and Disbursement Center, located at 14925 Kingsport Road, Fort Worth, TX 76155.

The deadline to apply for economic injury assistance is set for Feb. 26, 2024, providing affected businesses with ample time to submit their applications and avail themselves of the available support.