The U.S. Small Business Administration announced Economic Injury Disaster Loans are now available to Oregon small businesses.
Small nonfarm businesses in 21 Oregon counties and neighboring counties in Washington are now eligible to apply for low-interest federal disaster loans, announced Director Jeffrey Lusk of SBA’s Disaster Field Operations Center-West. These loans offset economic losses because of reduced revenues caused by drought in the 10 primary counties that began Aug. 1.
“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused the by the disaster and businesses directly impacted by the disaster,” Lusk said.
Primary Oregon counties eligible for the disaster loans include Clatsop, Lincoln, Morrow, Polk, Tillamook, Umatilla, Union, Wallowa, Washington and Yamhill counties.
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 of up to $2 million 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. These loans have an interest rate of 4% for businesses and 2.375% 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,” Lusk said.
Interest does not begin to accrue until 12 months from the date of the initial disaster loan disbursement. SBA disaster loan repayment begins 12 months from the date of the first disbursement.
By law, SBA makes Economic Injury Disaster Loans available when the U.S. Secretary of Agriculture designates an agricultural disaster. The secretary declared this disaster on Sept. 25.
Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency about the U.S. Department of Agriculture assistance made available by the secretary’s declaration, Lusk said. However, nurseries are eligible for SBA disaster assistance in drought disasters.
Applicants may apply online, receive additional disaster assistance information, and download applications at disasterloanassistance.sba.gov.
Applicants may also call SBA’s Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The deadline to apply for economic injury is May 28, 2024.
