The U.S. Small Business Administration (SBA) has announced that Economic Injury Disaster Loans are now open for application to eligible small businesses and certain other entities in Virginia, due to the drought experienced from June to August 2020. These small business loans in Virginia are aimed at providing financial support to those who suffered economic losses as a direct result of the drought. The loan amounts could reach up to $2 million, with interest rates of 3 percent for small businesses and 2.75 percent for private nonprofit organizations, and repayment terms of up to 30 years. The SBA will determine eligibility based on the size of the applicant, their type of activity, and their financial resources. The loans can be used to cover fixed debts, payroll, accounts payable, and other bills that could have been paid had the drought not occurred. Applications are open until August 2, 2021.
Disaster Field Operations Center East
Loan Availability in Virginia
ATLANTA – The U.S. Small Business Administration announced today that Economic Injury Disaster Loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and private nonprofit organizations in Virginia due to a drought from June 1 through Aug. 1, 2020.
Eligibility and Loan Details
Under this declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible farm- related and nonfarm-related entities that suffered financial losses as a direct result of this disaster. Except for aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers and ranchers. Nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.
The loan amount can be up to $2 million with interest rates of 3 percent for small businesses and 2.75 percent for private nonprofit organizations of all sizes, with terms up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.
Application Process
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at DisasterLoan.sba.gov and should apply under SBA declaration # 16801, not for the COVID-19 incident.
Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to DisasterCustomerService@sba.gov. Loan applications can be downloaded from sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Submit completed loan applications to SBA no later than Aug. 2, 2021.
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
Question & Answer
1. Who is eligible to apply for Economic Injury Disaster Loans in Virginia?
Small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and private nonprofit organizations in Virginia are eligible to apply for Economic Injury Disaster Loans.
2. What is the maximum loan amount available for small businesses and private nonprofit organizations?
The loan amount can be up to $2 million for small businesses and 2.75 percent for private nonprofit organizations, with repayment terms of up to 30 years.
3. What can the loans be used for?
The working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the drought not occurred.
