February 29, 2024

Missouri small businesses face March 5 SBA loan deadline for disaster assistance

Missouri small non-farm businesses are reminded of the deadline one month from now to apply for an SBA federal disaster low-interest loan to offset economic losses caused by reduced revenues due to drought. Eligible entities include those in Chariton, Carroll, Linn, Livingston, and Macon counties, among many others. There is a March 5 deadline to apply.

Small non-farm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private non-profits of any size may apply for Economic Injury Disaster Loans of up to $2 million to help meet working capital needs. The SBA loans may be used to pay fixed debts, payroll, accounts payable, and other bills that cannot be paid because of the disaster’s impact.

The interest rate is as low as 4 percent for businesses and 2.375 percent for private non-profit organizations with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. Interest does not begin to accrue until 12 months from the date of the first loan disbursement. Repayment begins 12 months from the date of the first disbursement.

By law, the SBA makes Economic Injury Disaster Loans available when the U.S. Secretary of Agriculture designates an agricultural disaster. The Secretary did so last July.

Businesses primarily 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.

Applicants may apply online and receive additional disaster assistance information on the SBA website. For more information, applicants may call the SBA’s Customer Service Center at (800) 659-2955 or email [email protected].

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