Small businesses operating in areas of the U.S. where Agriculture Secretaries have declared drought disasters are eligible for an economic disaster loan (EIDL loan).
The Small Business Administration has recently added a number of Western states where small businesses can opt for an EIDL loan due to drought conditions. You can search by state and county to see if you are in an area declared a disaster disaster.
Some of the states and counties are recent declarations and others continue as of 2021. You can still get an EIDL from a state declaration of drought disaster from 2021.
EIDL loans available for small businesses affected by drought
The current list of states where small businesses can opt for an EIDL loan due to drought are:
- North Dakota
- South Dakota
- New Mexico
According to U.S. National Weather Service U.S. drought monitoring, 47.5% of the U.S. is currently suffering from drought conditions. Additional counties and states are expected to be added to the list.
There are currently 25 states on the list. In the drought of 2013, the list finally had 34 states.
Amounts and applications of the EIDL
EIDLs vary in quantity and timing. The biggest thing a small business can get is a 30-year loan of up to $ 2 million with an interest rate of no more than 4%.
Here’s how to apply:
- Apply online through the SBA website or by phone at 800-659-2955.
- You must sign the IRS 4506-T as part of the application. The form allows the IRS to send copies of your tax returns to the SBA.
- An SBA inspector will come to your business and meet with you.
- You will have to wait 2 to 4 weeks to make a decision.
- If approved, you will sign the documentation, receive the money, and be linked to an SBA case manager.
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