Businesses in 20 West Virginia counties affected by a severe dry spell last August may qualify for low-interest federal loans. But the deadline to apply is fast approaching.
Following severe weather and disaster events, the U.S. Small Business Administration (SBA) can offer affected “small businesses, small agricultural cooperatives and private nonprofits” economic injury disaster loans, according to a March 21 SBA press release.
Businesses do not need to experience direct physical damage to qualify. Instead of physical repairs, these loans go toward “working capital needs” from the disaster period, including outstanding debts, payroll balances and other bills.
Dollar amounts vary business to business, but the SBA can award loans up to $2 million, all with no accruing interest. Payments are not due until one year following a loan’s distribution.
Businesses seeking loans for last August’s drought must apply through the SBA by April 21. Twenty West Virginia counties qualify for the program: Boone, Braxton, Cabell, Calhoun, Clay, Doddridge, Fayette, Gilmer, Jackson, Kanawha, Lewis, Lincoln, Mason, Nicholas, Putnam, Raleigh, Ritchie, Roane, Wirt and Wood counties.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, in the press release. “These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster.”
To apply for an economic injury disaster loan online through the U.S. Small Business Administration, visit the SBA website.
For more information on the loan program, residents can contact the SBA over the phone at (800) 659-2955 or over email at disastercustomerservice@sba.gov.
