By Scout Nelson
The U.S. Small Business Administration announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations affected by drought conditions in South Dakota. The financial assistance supports organizations experiencing economic losses connected to dry weather conditions beginning April 21.
The disaster declaration includes several South Dakota counties, including Aurora, Brule, Buffalo, Charles Mix, Gregory, Hughes, Hyde, Jerauld, Jones, Lyman, Mellette, Stanley, Todd, and Tripp. The declaration also includes Nebraska counties Boyd, Cherry, and Keya Paha.
Under the declaration, the SBA Economic Injury Disaster Loan program provides assistance to small businesses, nurseries, small agricultural cooperatives, and private nonprofit organizations, including faith-based groups. The agency explains that farmers, ranchers, and agricultural producers are generally not eligible for the loans, except for small aquaculture businesses.
The disaster loans help organizations continue operating during financial hardship caused by drought conditions. Eligible businesses and nonprofits may use the loans for payroll costs, accounts payable, fixed debts, working capital needs, and other bills that cannot be paid because of disaster-related losses. The assistance remains available even when no physical damage occurs to property or buildings.
“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.”
The SBA states that loan amounts may reach up to $2 million. Interest rates start as low as 4% for small businesses and 3.625% for private nonprofit organizations. Repayment terms may extend up to 30 years depending on financial conditions. Payments are not due until 12 months after the first loan disbursement date.
Organizations interested in assistance may apply online through the SBA disaster assistance website. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
Completed applications must be submitted no later than Jan. 6, 2027.
Photo Credit: pexels-karolina-grabowska
Categories: South Dakota, Government & Policy, Weather