Drought-related disaster loans offered to some Central Coast small businesses
SACRAMENTO, Calif. (KION) The California Office of Emergency Services announced that the U.S. Small Business Administration is offering drought-related federal disaster loans to some California counties, and the Central Coast is included.
OES said small non-farm businesses in Monterey, San Benito, Santa Cruz, San Mateo and Santa Clara Counties are eligible to apply for a low-interest loan to cover financial losses caused by reduced revenues due to a drought that started late last month.
“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,” said Director Tanya N. Garfield of SBA’s Disaster Field Operations Center-West.
Businesses such as small non-farm businesses, small agricultural cooperatives, small businesses involving aquaculture and most private nonprofit organizations may qualify for the Economic Injury Disaster Loans. They could be eligible for as much as $2 million in loans to help cover costs and expenses that could have been met if the drought did not happen.
“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 3 percent for businesses and 2 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.
Businesses that are mainly focused on farming or ranching are not eligible for the loans, and they can contact the Farm Service Agency about assistance through the U.S. Department of Agriculture.
Applicants can submit their applications online here, call the customer service center at 800-659-2955 or email the customer service center at disastercustomerservice@sba.gov. The deadline for applications is Jan. 3, 2022.
