Time is running short for Nevada's small businesses and nonprofit organizations looking to apply for economic relief due to the prolonged drought. The U.S. Small Business Administration (SBA) has set a Nov. 25 application deadline for low-interest federal disaster loans to help offset economic losses that began on Jan. 1. These Economic Injury Disaster Loans (EIDLs) are designed to assist those in designated counties where the drought has taken a financial toll. According to a reminder issued by the SBA and published on ein.az.gov, the affected Nevada counties include Churchill, Clark, Esmeralda, Eureka, Lander, Lincoln, Lyon, Mineral, Nye, and White Pine.
The loans are also available to eligible entities in neighboring states, with Mohave County in Arizona, Inyo, Mono, and San Bernardino in California, and Beaver, Iron, Millard, and Washington in Utah qualifying for assistance. SBA's EIDL program provides financial support uniquely designed for small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations affected by the drought disaster. However, it should be noted that these loans are not available to agricultural producers, farmers, or ranchers, with the exception of small aquaculture enterprises. Chris Stallings, the associate administrator of the Office of Disaster Recovery and Resilience at the SBA, emphasized the role of the SBA in community recovery, stating, "We're pleased to offer loans to small businesses and private nonprofits impacted by these disasters."
Under the terms of the EIDL, eligible parties can borrow up to $2 million, which can be used to cover working capital needs caused by the drought, such as fixed debts, payroll, accounts payable, and other bills that went unpaid due to the disaster's impact. Small businesses can secure loans at interest rates as low as 4%, while private nonprofits could see rates of 3.625%, with loan terms extending up to 30 years. SBA determines the amount of each loan and sets the repayment terms based on the financial condition of each applicant. Importantly, interest is deferred, and repayments aren't required until 12 months from the first loan disbursement.
Applications can be submitted online through the SBA's site, and further guidance can be obtained by contacting their Customer Service Center at (800) 659-2955 or via email at [email protected]. For those with speech disabilities or who are deaf or hard of hearing, telecommunication relay services can be accessed by dialing 7-1-1.
