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Businesses affected by drought encouraged to apply for disaster loans

Published On: Aug 26 2014 03:19:38 PM CDT
SACRAMENTO, Calif. -

Small, non-farm businesses in counties deeply affected by the ongoing drought are being encouraged to apply for disaster loans from the U.S. Small Business Administration.

Time is running out, however; the deadline to apply is Sept. 15.

These loans are to offset economic losses because of reduced revenues to farmers and ranchers caused by the drought in the following counties, said Tanya N. Garfield, Director of SBA's Disaster Field Operations Center - West.

Those counties include:

California (primary) - Alameda, Alpine, Amador, Calaveras, Contra Costa, El Dorado, Fresno, Inyo, Kern, Kings, Los Angeles, Madera, Mariposa, Merced, Mono, Monterey, Sacramento, San Benito, San Bernardino, San Joaquin, San Luis Obispo, Santa Barbara, Santa Clara, Stanislaus, Tulare, Tuolumne and Ventura;

California (neighboring): Orange, Placer, Riverside, San Mateo, Santa Cruz, Solano, Sutter and Yolo.

Neighboring Arizona counties: La Paz and Mohave;

Neighboring Nevada counties: Clark, Douglas, Esmeralda, Lyon, Mineral and Nye.

"SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster," Garfield said.

Small, nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private, nonprofit organizations of any size may qualify for Economic Injury Disaster Loans (EIDLs) of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.

Eligibility is based on the financial impact of the disaster and not on any actual property damage.

For more information or to apply online, click here.

More information and application forms are also available by calling 800-659-2955 or e-mailing disastercustomerservice@sba.gov.