SBA Loans Still Open for Missouri Drought Victims

By Blake Jackson

Small businesses and private nonprofit organizations in Missouri affected by last year’s drought still have time to apply for low-interest federal disaster loans.

The U.S. Small Business Administration (SBA) has set a June 16 deadline for these Economic Injury Disaster Loans (EIDL), which aim to help eligible entities recover from financial hardships caused by the drought that began on October 8, 2024.

The EIDL program is available to small businesses, small agricultural cooperatives, nurseries, and nonprofits that experienced economic loss due to the drought.

However, agricultural producers, farmers, and ranchers are not eligible, except for small aquaculture enterprises.

The disaster declaration includes 15 counties in Missouri, such as Barry, Barton, Cedar, Christian, and Greene. It also extends to counties in Arkansas, Kansas, and Oklahoma, including Benton, Boone, Cherokee, and Ottawa.

These working capital loans help cover fixed debts, payroll, accounts payable, and other operating costs. Applicants do not need to have suffered physical damage to qualify.

Loan amounts can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.25% for nonprofits, offering repayment terms of up to 30 years.

The SBA assesses each applicant’s financial condition to determine the loan terms. Importantly, interest does not accrue and payments aren’t due until 12 months after disbursement.

“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

To apply visit,sba.gov/disaster or contact SBA Customer Service at (800) 659-2955. People with speech or hearing disabilities can dial 7-1-1 for relay services.

Submit your completed application by June 16 to receive assistance.

Photo Credit: photo-library-igor-stevanovic