Photo credit Source : www.exploreseiowa.com
Disaster Loans Available for Small Businesses Impacted by Drought in Iowa and Neighboring Counties
Business owners in Iowa and neighboring counties have a new opportunity to recover from the economic impacts of the recent drought. The U.S. Small Business Administration is offering low-interest federal disaster loans to help offset losses for small nonfarm businesses in the region.
These loans are available to businesses in 43 Iowa counties, as well as neighboring counties in Minnesota and Wisconsin. In southeast Iowa, counties such as Washington, Jefferson, Keokuk, Louisa, and Mahaska are eligible to apply for an Economic Injury Disaster Loan.
Eligibility for these loans is based on the financial impact of the drought, rather than any actual property damage. Small nonfarm businesses, agricultural cooperatives, businesses engaged in aquaculture, and private nonprofit organizations may qualify for loans of up to $2 million to help cover financial obligations and operating expenses.
The interest rates for these loans are 4 percent for businesses and 3.25 percent for nonprofit organizations, with a maximum term of 30 years. Repayment begins 12 months from the date of the first disbursement, and interest begins to accrue after 12 months as well.
Businesses primarily engaged in farming or ranching are not eligible for this assistance, but other small businesses in the region are encouraged to apply online at SBA.gov/disaster for more information and to start the application process.
This opportunity provides a lifeline for businesses struggling in the aftermath of the drought, offering a path to financial recovery and stability. Small business owners in the region are encouraged to take advantage of this support to help rebuild and thrive in the face of adversity.
