April 22, 2024
Loans

Hanover, New Kent farms eligible for loans following drought


Farming and agricultural businesses in Virginia affected by the August drought are eligible for federal loans to help recover their economic losses.

The Small Business Administration announced that small businesses, including agricultural cooperatives, aquaculture businesses, nurseries and most private nonprofits, can apply to receive Economic Injury Disaster Loans.

The areas listed in the announcement include Hanover, King William and New Kent counties. Other localities include Caroline, Essex, Gloucester, James City, King George, King and Queen, Lancaster, Middlesex, Richmond County and Westmoreland.


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The program is available to farming and non-farming institutions directly impacted by the drought, with eligibility determined by the applicant’s size, type of activity and financial resources.

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“Working capital loans from the SBA are essential to eligible small businesses when the Secretary of Agriculture declares a disaster due to farmers’ crop losses,” said Francisco Sanchez, Jr., associate administrator at SBA’s Office of Disaster Recovery & Resilience, in a statement. “These loans help sustain rural economies when a disaster occurs.”

A disaster loan can total up to $2 million depending on the financial condition of the business. Interest rates for small businesses are marked at 4%, while private nonprofit rates stand at 2.375%.

Loan terms go up to 30 years with no accrued interest. Payments are due 12 months after the first loan disbursement. According to the SBA, the loans are intended to pay fixed debts, payroll, accounts payable and other bills, not to replace lost sales or profits.

Agricultural producers, farmers and ranchers are not eligible for SBA disaster loans, with the exception of aquaculture enterprises.

Businesses have until Aug. 12 to submit applications at sba.gov/disaster. They can also call (800) 659-2955 or email disastercustomerservice@sba.gov for more information.



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