By Stephen Smoot
After a summer of powerful storms, heavy rains, and destructive flooding, many could be forgiven if they forgot that drought conditions afflicted most of the state. Even through significant rainfall, the federal monitor registered drought conditions through, in some cases, weeks of stormy weather.
Businesses and private nonprofits in counties afflicted by, or neighboring the counties afflicted by, the drought starting on May 19 of this year can apply. In the Potomac Highlands, this includes Pendleton, Hardy, Grant, Hampshire, Mineral, and Tucker counties.
Randolph and Pocahontas counties also are eligible.
The United States Small Business Administration, which offers the relief, has set a deadline of March 8, 2027.
The relief comes in the form of “Economic Injury Disaster Loans.” They offer “working capital loans to help small businesses and small agricultural cooperatives and nurseries, small businesses engaged in agriculture, and private nonprofit organizations.” Nonprofits could include farmers markets or similar type establishments.
Faith-based organizations may also apply if they meet criteria.
Excluded from SBA relief are farmers and ranchers who have access to assistance from the United States Department of Agriculture through the Farm Service Agency.
Applicants can request up to $2 million. Interest rates are set at a maximum of 4 percent for small business and 3.625 percent for private nonprofit organizations. The term of the loan can extend as long as 30 years with no interest accrued in the initial year.
SBA officials base the loan amount on estimated damages.
Loans are meant to assist with “necessary financial obligations that cannot be met as a result of the disaster.” The loan is specifically not meant as a “bridge” but to help the establishment through “the disaster recovery period.” Additionally, they may not be used to pay down long-term debts.
Applicants “must have a credit history acceptable to SBA” and also “show the ability to repay the loan.”
They must also be located in the affected area, have an economic injury directly caused by the disaster, and have losses that are not insured or are otherwise not compensated.
If the SBA requires collateral for the loan, it may also require insurance of the item used for that purpose.
For more information, call 1 (800) 659-2955 or email [email protected].
