On Sep. 20, SBA reported capital loans applications in MN for drought.
SBA announced federal Economic injury disaster loans (EIDLs) are available in Minnesota for businesses with economic losses due to drought that began Jul. 18.
Follows SBA announcement on Minnesota drought federal aid assistance, #184857.
EIDL Program
Available to eligible farm-related entities that suffered financial losses from disaster.
Apart from aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, and ranchers; nurseries are eligible to apply for disaster loans.
Interest and monthly payments not due until 12 months from initial disbursement.
Eligibility is based on size of the applicant, type of activity and its financial resources.
Working capital loans may be used to pay fixed debts, payroll, accounts payable, in addition to other bills that could have been paid had the disaster not occurred.
Noted that these EIDL loans are not intended to replace lost sales or profits.
Consultation
Completed EIDL loan applications must be submitted to the SBA by May 13, 2024.
