By Scout Nelson
The U.S. Small Business Administration (SBA) reminds small businesses and private nonprofit groups in South Dakota that low-interest federal disaster loans are still available for drought-related losses. The deadline to apply is June 23, 2025.
These loans are part of the SBA’s Economic Injury Disaster Loan (EIDL) program and are offered to eligible businesses and nonprofits impacted by the drought that began on October 15, 2024. The affected South Dakota counties include Bennett, Jackson, Jones, Lyman, Mellette, Todd, and Tripp.
The EIDL program helps small businesses, private nonprofits, small agricultural cooperatives, and nurseries cover working capital needs. This includes help with paying fixed debts, employee wages, bills, and other routine expenses that could not be met due to the disaster.
It is important to note that agricultural producers, farmers, and ranchers are not eligible for this loan unless they operate small aquaculture enterprises.
Loan amounts can reach up to $2 million. Interest rates are as low as 4% for small businesses and 3.25% for private nonprofits. Terms can extend up to 30 years, depending on the applicant’s ability to repay them. Also, loan payments are deferred for the first 12 months, with no interest charged during that period.
Even if a business did not suffer physical damage, it can still apply for the loan based on economic loss.
To apply for assistance, eligible applicants can visit the SBA website at sba.gov/disaster.
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Categories: South Dakota, Business, Government & Policy