Idaho drought relief opens SBA disaster loan access for small businesses and nonprofits

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Idaho drought SBA disaster loans

Highlights

The U.S. Small Business Administration is offering low-interest Economic Injury Disaster Loans to small businesses and nonprofits in 10 Idaho counties, plus regions in Nevada and Utah, affected by drought.
Eligible entities can borrow up to $2 million at interest rates as low as 4% for businesses and 3.625% for nonprofits, with repayment deferred for 12 months.
Loans may cover working capital needs such as payroll and accounts payable, but are not available to most agricultural producers, farmers, or ranchers except for small aquaculture enterprises.

Loan terms and eligible counties

As announced by the U.S. Small Business Administration, low-interest Economic Injury Disaster Loan funding is available to small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations, including faith-based groups, affected by the drought. The declaration applies to Blaine, Cassia, Elmore, Gooding, Jerome, Minidoka, Oneida, Owyhee, Power and Twin Falls counties in Idaho, as well as Elko County in Nevada and Box Elder County in Utah.

The SBA says the loans are intended to cover working capital needs tied directly to the disaster, even when no physical property damage occurs. Funds may be used for fixed debts, payroll, accounts payable and other bills that could not be paid because of the drought.

Funding limits and regional business impact

The loan amount can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.625% for private nonprofits, and terms of up to 30 years. Interest does not accrue and payments are not due until 12 months after the first loan disbursement, while final loan amounts and terms depend on each applicant's financial condition.

The SBA cannot provide disaster loans to agricultural producers, farmers or ranchers under this declaration, except for small aquaculture enterprises. Chris Stallings, associate administrator of the agency's Office of Disaster Recovery and Resilience, says the assistance is designed to help communities recover after a declaration by the U.S. Secretary of Agriculture.

Our earlier coverage of SBA Economic Injury Disaster Loans (EIDL) for drought losses in Michigan explained that eligible small businesses and private nonprofits in several counties could apply for working-capital relief even without physical damage. We also summarized the main terms—up to $2 million in financing, low interest rates, and payments deferred for 12 months—along with the application deadline and a 60-day grace period.

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