SBA Reminds Utah Businesses of December 1 Deadline to Apply for Disaster Loans

Strategic Insights -

The United States Small Business Administration (SBA) is urging eligible small businesses and private nonprofit organizations in Utah to apply for low-interest federal disaster loans by December 1. The loans aim to offset economic losses caused by drought, which began on January 28. The affected areas include Utah counties, as well as counties in Arizona, Colorado, Nevada, and New Mexico. The SBA's Economic Injury Disaster Loan (EIDL) program is available to businesses, cooperatives, nurseries, and nonprofit organizations that have suffered financial losses directly related to the disaster.

Key Takeaways:

  • The SBA's EIDL program provides low-interest loans to small businesses and nonprofit organizations in Utah, as well as adjacent areas in Arizona, Colorado, Nevada, and New Mexico, to offset economic losses caused by drought.
  • The deadline to apply for disaster loans is December 1, and loans can be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.
  • The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.625% for nonprofit organizations, with terms up to 30 years.
  • Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement.
  • Applicants can apply online at sba.gov/disaster, or call (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.
  • Completed loan applications must be submitted to the SBA no later than December 1.
  • The SBA sets loan amounts and terms based on each applicant's financial condition.
  • The SBA's Economic Injury Disaster Loan (EIDL) program is available to businesses, cooperatives, nurseries, and nonprofit organizations with financial losses directly related to the disaster.

Statistics:

  • Up to $2 million in loan amounts are available to eligible businesses and nonprofit organizations.
  • Interest rates as low as 4% for small businesses and 3.625% for nonprofit organizations.
  • Terms of up to 30 years for loan repayment.
  • A 12-month grace period before payments are due on the loan.
  • A total of 11 Utah counties, as well as counties in Arizona, Colorado, Nevada, and New Mexico, are designated for disaster relief.

Sources:

  • United States Small Business Administration (sba.gov)
  • MIL-OSI Publisher Source (milnz.co.nz/mil-osi-aggregation/)