SBA Announces Lending to Agricultural Companies Affected by Drought



Businesses hit by the dry summer in the Thumb may now have a breather.

The US Small Business Administration announced that disaster loans are available to small businesses, small agricultural cooperatives, small aquaculture businesses, and private non-profit organizations located in the thumb area.

Loans are available in the main county of Sanilak, as well as in the counties of Huron, Tuscola, Lapier and St. Clair. It was announced that the drought in these counties began on June 8th.

“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damage and crop losses, the Small Business Administration issues the declaration to the appropriate organizations affected by the same disaster,” said Kim Fleming, director of the SBA’s Eastern Field Operations Center. in the statement.

The United States Drought Monitor as of August 10 shows that five counties in the Tamb area are experiencing an abnormally dry season, with much of Huron County experiencing a moderate drought. The situation was worse in early summer when much of Sanilak County was also in moderate drought.

Michael Lampton, a spokesman for the Small Business Administration, said the loans should be designed to supplement working capital, such as paying off long-term debt or delaying employee salaries.

“If the drought has affected them so that they have not been able to achieve normal income levels, and they need a loan to pay off arrears or support employees, it can be used for this purpose.”

The loan program is available to eligible agricultural and non-agricultural organizations that have suffered financial losses as a result of this disaster.

With the exception of aquaculture businesses, the SBA cannot provide disaster loans to agricultural producers, farmers and ranchers. Nurseries are eligible to apply for a disaster economic loss loan to recover damages caused by drought.

Lampton said farmers and ranchers have their own loan program through the USDA to help them do just that.

“The SBA supports businesses in the farming community that depend on farmers and ranchers for their livelihoods,” Lamptom said, citing restaurants, clothing stores, fertilizer factories and repair shops as examples.

The loan amount can be up to US $ 2 million with an interest rate of 2.88% for small businesses and 2% for private non-profit organizations of any size and for up to 30 years. The SBA determines eligibility based on the size of the applicant, the type of activity and their financial resources.

Lampton said the SBA has an unlimited pool for this as the loans come from the national treasury.

Completed loan applications must be submitted to the SBA no later than April 11, 2022, which can be done online at


Source link