SBA offers loans to McDowell small businesses, nonprofits
Low-interest disaster loans now available
The U.S. Small Business Administration announced the availability of low-interest federal disaster loans to small businesses and private nonprofit organizations in North Carolina that sustained economic losses caused by a drought beginning on April 7.
McDowell County is one of the counties covered by this disaster declaration.
The disaster declaration covers the North Carolina counties of Alleghany, Ashe, Avery, Buncombe, Caldwell, Davidson, Davie, Forsyth, Franklin, Granville, Guilford, Haywood, Henderson, Jackson, Madison, McDowell, Montgomery, Polk, Randolph, Rowan, Rutherford, Stanly, Transylvania, Vance, Warren, Watauga, Wilkes, and Yancey, the South Carolina counties of Greenville, Oconee, and Pickens, the Tennessee county of Johnson, as well as the Virginia counties of Grayson and Mecklenburg, according to a news release.
Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations — including faithbased organizations — with financial losses directly related to this disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.
EIDLs are available for working capital needs caused by the disaster and are available even if the small business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could not be paid due to the disaster, according to the news release.
"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 loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.625% for PNPs, with terms of up to a maximum of 30 years. Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant's financial condition, according to the news release.
To apply online, visit sba.gov/ disaster.
The deadline to return economic injury applications is Dec. 21.
