SBA opens disaster loan relief for Kansas businesses hit by drought

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SBA disaster loans for Kansas businesses

Highlights

The U.S. Small Business Administration activated its Economic Injury Disaster Loan program for 18 Kansas counties, plus parts of Colorado and Oklahoma, affected by drought.
Eligible loans provide up to $2 million with 4% interest for small businesses and 3.625% for private nonprofits, with up to 30-year terms and 12-month payment deferral.
Agricultural producers, farmers, and ranchers are generally excluded from eligibility except for small aquaculture businesses, with funds covering fixed debts, payroll, and bills caused by drought-related financial losses.

Kansas drought loan terms and coverage

As announced by the U.S. Small Business Administration, the relief is offered through the agency’s Economic Injury Disaster Loan program for small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations, including faith-based groups, that face financial losses directly tied to the drought.

The declaration applies to the Kansas counties of Cheyenne, Clark, Comanche, Ford, Grant, Greeley, Hamilton, Kearny, Kiowa, Logan, Meade, Morton, Rawlins, Sherman, Stanton, Stevens, Thomas, Wallace and Wichita. It also includes Baca, Kit Carson and Prowers counties in Colorado, and Beaver and Harper counties in Oklahoma.

The SBA says agricultural producers, farmers and ranchers are not eligible for these disaster loans, except for small aquaculture enterprises. The financing can be used for fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster, even if no physical damage occurs.

Financing support for regional recovery

The loan amount 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, while final loan amounts and terms depend on 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 after a disaster declaration by the U.S. Secretary of Agriculture. Businesses and organizations can apply online through sba.gov/disaster or contact the SBA’s Customer Service Center for additional information.

In our earlier coverage of the SBA’s drought-related Economic Injury Disaster Loan (EIDL) program, we explained how eligible small businesses and private nonprofits in drought-declared Wyoming counties—and certain adjacent counties in nearby states—could access federal working-capital support. We highlighted key terms such as loan amounts up to $2 million, rates as low as 4% (3.625% for nonprofits), repayment terms up to 30 years, and a 12-month deferral on interest and payments, while noting that most agricultural producers are excluded except for small aquaculture enterprises.

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