Small businesses in Maui, Kalawao and Hawaii counties have until Dec. 8 to apply for a federal disaster loan for revenue losses caused by the drought that began Feb. 8, the U.S. Small Business Administration reminded on Tuesday. to residents.
Small non-farm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations of any size can apply for economic disaster loans of up to $2 million to help meet the working capital needs caused by the drought.
The loans “may be used to pay fixed debts, salaries, accounts payable and other bills that cannot be paid due to the impact of the disaster”, said Tanya Garfield, director of the SBA Disaster Field Operations Center-West.
“SBA eligibility covers both economic impacts on businesses dependent on farmers and ranchers who suffered agricultural production losses caused by the disaster and businesses directly affected by the disaster,” Garfield added. “Assistance for economic damage is available whether or not the claimant has suffered property damage.”
The interest rate is 2.94% for corporations and 1.875% for private non-profit organizations with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial situation.
Businesses whose primary business is agriculture or ranching are not eligible for SBA disaster relief. Agriculture businesses should contact the Farm Services Agency about U.S. Department of Agriculture assistance made available by the Agriculture Secretary’s April 8 declaration of agricultural disaster. However, nurseries are eligible for SBA disaster relief in the event of a drought.
For more information or to apply, go to Disasterloanassistance.sba.gov/.
Applicants may also call the SBA Customer Service Center at (800) 659-2955 or email Disaster Customer Service @sba.gov for more information. For people who are deaf, hard of hearing or have a speech impediment, dial 711 to access telecommunications relay services.
Completed applications should be mailed to US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.