NEWS RELEASE: SBA DISASTER LOANS AVAILABLE TO OFFSET ECONOMIC LOSSES FROM DROUGHTPosted on May 17, 2022 in Information and News Releases, News Stories
SBA DISASTER LOANS AVAILABLE TO OFFSET ECONOMIC LOSSES FROM DROUGHT
For Immediate Release: Tuesday, May 17, 2022 Release No. 2022-024
HONOLULU — The U.S. Small Business Administration (SBA) has made low-interest federal disaster loans available to small, non-farm businesses in Maui, Kalawa‘o and Honolulu counties. The loans are intended to offset economic losses from lower revenue caused by the drought that has affected Honolulu and Kalawa‘o counties since March 15, 2022.
“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster,” said Tanya N. Garfield, Director of SBA’s Disaster Field Operations – West, in a news release. U.S. Secretary of Agriculture Thomas Vilsack declared a disaster related to the drought on May 6.
Economic Injury Disaster Loans of up to $2 million are available to qualifying small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations of any size.
The loans are intended to help meet financial obligations and operating expenses which could have been met had the drought disaster not occurred. They carry an interest rate of 2.94 percent for businesses and 1.875 percent for private nonprofit organizations, with a maximum term of 30 years.
The Hawai‘i Emergency Management Agency encourages qualifying businesses to that need assistance to apply before the deadline of Jan. 6, 2023.
Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Service Agency about assistance. However, nurseries are eligible for SBA disaster assistance in drought disasters.
To apply or obtain more information, visit https://disasterloanassistance.sba.gov, call SBA’s Customer Service Center at (800) 659-2955 or email [email protected]. Potential applicants who are deaf, hard of hearing or have a speech disability may contact the SBA using telecommunications relay services by dialing 7-1-1.
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