By Scout Nelson
The U.S. Small Business Administration is offering disaster relief to small businesses and private nonprofit organizations in South Dakota that are facing financial losses due to a drought that began on April 15. This support comes in the form of low interest Economic Injury Disaster Loans.
The relief covers the South Dakota counties of Bennett, Custer, Fall River, Jackson, Oglala Lakota, and Pennington. It also includes nearby counties in Nebraska—Cherry, Dawes, Sheridan, and Sioux—and in Wyoming—Niobrara and Weston.
These EIDLs are available to small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have experienced economic harm due to the drought. However, the loans are not available to most farmers, ranchers, or agricultural producers—only small aquaculture businesses may qualify.
The loans aim to help businesses meet regular expenses that they cannot cover because of the drought. This includes costs like payroll, fixed debts, rent, utilities, and other unpaid bills. Businesses do not need to have physical damage to qualify.
Eligible businesses and nonprofits can apply for up to $2 million in loans. The interest rate is as low as 4% for small businesses and 3.625% for private nonprofits. Loan terms can be extended up to 30 years depending on the financial condition of the applicant.
A key benefit is that no payments are required, and no interest will be charged, for the first 12 months after the first loan disbursement.
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Categories: South Dakota, Business, General