SBA Loans Available Due To Drought

The U.S. Small Business Administration (SBA) has announced that federal Economic Injury Disaster Loans (EIDL) are available in Alabama for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations with economic losses due to drought that began on September 12. The declaration includes Baldwin and Mobile counties. SBA’s EIDL program is available to eligible 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% for small businesses and 2.375% for private nonprofits with terms up to 30 years. The loans are not intended to replace lost sales or profits. Applications should be made under SBA declaration No. 18197. Disaster loan information and application forms may also be obtained by contacting SBA’s Customer Service Center at phone: 800-659-2955 or email. Completed loan applications must be submitted to SBA no later than May 20, 2024.