The U.S. Small Business Administration (SBA) has announced that small businesses, small agricultural cooperatives and most private nonprofit organizations have until June 5 to file for federal working capital loans in parts of Connecticut and New York for drought that began Aug. 9, 2022.
The SBA low-interest disaster loans are available in the counties of Fairfield, Hartford, Litchfield and New Haven in Connecticut and in Dutchess, Putnam, and Westchester in New York; the loans are also available in Berkshire and Hampden counties in Massachusetts.
Under this declaration, the SBA”™s Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of the drought. The loan amount can be up to $2 million with interest rates of 3.04% for small businesses and 1.875% for private nonprofit organizations, with terms up to 30 years.
These loans can 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.
Apart from aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers and ranchers. However, nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.
Applicants may apply online using the Electronic Loan Application (ELA) via the SBA”™s secure website at DisasterLoanAssistance.sba.gov/ela/s/ and should apply under SBA declaration #17669.
