Drought makes area counties eligible for SBA loans

    Small nonfarm businesses in 64 Colorado counties and neighboring counties in Nebraska are now eligible to apply for low-interest federal disaster loans from the U.S. Small Business Administration.
    The loans are designed to offset economic losses caused by drought in the following Colorado counties that began Nov. 1, 2021, said Tanya N. Garfield of SBA’s Disaster Field Operations Center-West.
    Phillips County, Colorado is one of the primary counties, making Chase, Perkins and Dundy counties in Nebraska also eligible.
    “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 ag cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may qualify for the loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred, she said.
    The loans have a 2.83% interest rate of for businesses and 1.875% for private nonprofit organizations, with a maximum term of 30 years.
    The U.S. Secretary of Agriculture declared the disaster on April 8, making the loans available.
    Businesses primarily engaged in farming or ranching are not eligible for the loans, but nurseries are.
    Applicants can apply online, download applications at
disasterloanassistance.sba.gov, call SBA’s Customer Service Center at 800-659-2955 or email disastercustomerser vice@sba.gov for more information.
    Application deadline is Dec. 8.