Small businesses and nonprofit organizations across Northwest Georgia may now qualify for low-interest federal disaster loans following a drought disaster declaration issued by the U.S. Small Business Administration.
The SBA announced that Economic Injury Disaster Loans (EIDL) are available to help eligible businesses and private nonprofit organizations recover from financial losses caused by drought conditions that began on Feb. 17.
The declaration covers several Georgia counties, including Gordon County, Walker County, Floyd County, Bartow County, Chattooga County, Polk County, and several metro Atlanta-area counties. The declaration also includes Cherokee County.
According to the SBA, eligible applicants include small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations — including faith-based groups — that suffered economic losses related to the drought. Agricultural producers, farmers, and ranchers are generally not eligible unless they operate aquaculture enterprises.
The loans are intended to help organizations meet working capital needs and can be used to pay fixed debts, payroll, accounts payable, and other bills that could not be paid because of the disaster’s economic impact. Businesses do not need to have suffered physical damage to qualify.
Loan amounts of up to $2 million are available, with interest rates as low as 4% for small businesses and 3.625% for nonprofit organizations. Loan terms can extend up to 30 years, depending on the applicant’s financial condition.
The SBA also noted that interest will not begin accruing and payments will not be due until 12 months after the first loan disbursement.
Applications can be submitted online through the SBA disaster assistance portal at SBA Disaster Assistance.
Applicants seeking additional information can contact the SBA Customer Service Center at (800) 659-2955 or email [email protected]. Individuals who are deaf, hard of hearing, or have a speech disability may dial 7-1-1 to access telecommunications relay services.