NDSU Extension - Mercer County

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Small Business Administration Economic Injury Disaster Loans Available to North Dakota Counties

disaster loans, low-interest federal disaster loans

Submitted by Craig Askim, Extension Agent, Agriculture and Natural Resources 

Small Business Administration Economic Injury Disaster Loans Available to North Dakota Counties

Small, nonfarm businesses in North Dakota are now eligible to apply for low‑interest federal disaster loans from the U.S. Small Business Administration (SBA). These loans offset economic losses because of reduced revenues caused by multiple events that occurred in the following primary North Dakota counties, announced Director Tanya N. Garfield of SBA’s Disaster Field Operations Center ‑ West.

Mercer County qualifies for two types of disaster assistance loans. The first loan EIDL # 14648 relates to incident types caused by frost, drought and freezing temperatures that occurred from the time frame of March 1 to October 1 2015. The second loan is EIDL# 14649 due to incidents caused by drought, excessive heat, high winds and hail that occurred from the timeframe of March 15 to October 30, 2015. The deadline to sign up and complete paperwork for either of these disaster assistance loans is October 24, 2016.

“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 agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may qualify for Economic Injury Disaster Loans (EIDLs) of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.

“Eligibility for these loans is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4 percent for businesses and 2.625 percent for private nonprofit organizations, a maximum term of 30 years, and are available to small businesses and most private nonprofits without the financial ability to offset the adverse impact without hardship,” Garfield said.

By law, SBA makes EIDLs available when the U.S. Secretary of Agriculture designates an agricultural disaster. Secretary Tom Vilsack declared these disasters on February 24, 2016.

Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency about the U.S. Department of Agriculture assistance made available by the Secretary’s declaration. However, in drought disasters nurseries are eligible for SBA disaster assistance. 

Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloan.sba.gov/ela.

Disaster loan information and application forms are also available from SBA’s Customer Service Center by calling (800) 659-2955 or emailing disastercustomerservice@sba.gov. Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339. For more disaster assistance information, or to download applications, visit http://www.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.

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