SBA opens disaster loan program for North Carolina businesses hit by drought

Traders Union
All News
Financial News
SBA disaster loans for NC drought

Highlights

The U.S. Small Business Administration opened Economic Injury Disaster Loans of up to $2 million for drought-impacted small businesses and nonprofits in 28 North Carolina counties and adjacent areas.
Loan interest rates start at 4% for small businesses and 3.625% for private nonprofits, with up to 30-year terms and deferred payments for 12 months.
Agricultural producers, farmers, and ranchers are not eligible except aquaculture, and loans cover working capital needs like fixed debts, payroll, and accounts payable.

Loan terms and eligible areas

As reported by the U.S. Small Business Administration, the declaration makes its Economic Injury Disaster Loan program available to eligible small businesses, small agricultural cooperatives, nurseries and private nonprofits, including faith-based organizations, that suffer financial losses directly tied to the drought.

The covered North Carolina counties are Alleghany, Ashe, Avery, Buncombe, Caldwell, Davidson, Davie, Forsyth, Franklin, Granville, Guilford, Haywood, Henderson, Jackson, Madison, McDowell, Montgomery, Polk, Randolph, Rowan, Rutherford, Stanly, Transylvania, Vance, Warren, Watauga, Wilkes and Yancey. The declaration also includes Greenville, Oconee and Pickens counties in South Carolina, Johnson County in Tennessee, and Grayson and Mecklenburg counties in Virginia.

The loans support working capital needs caused by the disaster and remain available even when a business or nonprofit does not sustain physical damage. Funds may be used for fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster.

Recovery support for regional employers

The SBA says loan amounts can reach $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, with final terms set according to each applicant's financial condition.

Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, says the assistance is intended to help communities recover following a declaration by the U.S. Secretary of Agriculture. The agency says agricultural producers, farmers and ranchers are not eligible for these disaster loans, except for aquaculture enterprises.

Applications are available online at sba.gov/disaster, while additional information is available through the SBA Customer Service Center by phone or email.

Our earlier coverage of the House Financial Services Committee’s bipartisan amendment to the 21st Century ROAD to Housing Act noted its overwhelming House passage and the growing coalition of more than 250 industry groups backing the package. The article highlighted provisions aimed at boosting housing supply and affordability, including changes to forced-sale requirements, higher multifamily loan limits, and relief intended to strengthen community banks’ role in housing finance.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.