Statement by Representative Nadler on Economic Disaster Loans Due to Drought

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New York, NY – Today, Congressman Jerrold Nadler announced the availability of Economic Disaster Loans (EIDLs) from the Small Business Administration (SBA) for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofits suffering economic losses from the drought that began August 9, 2022. In New York City, this disaster declaration includes Brooklyn, Manhattan, and Staten Island.

“I am pleased to share that this disaster assistance is available for eligible entities affected by the severe drought experienced this summer,” Congressman Nadler said. “As the climate crisis brings more extreme weather events, I will continue to fight to mitigate the effects on those most at risk from the unpredictable weather.”

Who can apply for EIDL and what are the conditions?

When the Secretary of Agriculture issues a disaster declaration to help farmers recover from crop damage and loss, the Small Business Administration issues a declaration to eligible entities (small businesses, small agricultural cooperatives, small businesses engaged in l aquaculture and most private non-profit organizations) affected by the same disaster in the same disaster area.

When farmers suffer, agricultural and non-agricultural businesses, including not-for-profit organizations in farming communities, can also be economically affected. For example, when the farmer is unable to plant or harvest due to drought, the disaster can impact agricultural implement dealers, dusters, feed and seeds, packers and canneries (farm related) and can impact local restaurants, retailers, wholesalers. , grocers, etc. (companies not related to agriculture).

Non-profit organizations that may be affected include, but are not limited to, thrift stores, bakeries, farms/fruit stalls, charities and social organizations, museums, associations (cooperatives), road associations, water associations, etc. If they are unable to collect dues or generate sales for typical expenses and the drop can be attributed to the disaster, they can apply for an economic disaster loan for working capital needs due loss suffered due to drought. Please note that religious organizations are not eligible.

These working capital loans can be used to pay fixed debts, salaries, accounts payable and other bills that could have been paid had the disaster not occurred. Loans are not intended to replace lost sales or profits.

Under this statement, the SBA Economic Disaster Loan Program is available to eligible farm and non-farm entities that have suffered financial loss as a direct result of this disaster. Outside of aquaculture businesses, the SBA cannot provide disaster loans to agricultural producers, farmers, and ranchers. Nurseries are eligible to apply for economic disaster loans for losses caused by drought conditions.

The loan amount is up to $2 million with interest rates of 3.04% for small businesses and 1.875% for private nonprofits, with terms up to 30 years. These working capital loans can be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. Loans are not intended to replace lost sales or profits.

Applicants can apply online using the Electronic Loan Application (ELA) through the SBA’s secure website at DisasterLoanAssistance.sba.gov/ela/s/ and should apply under SBA statement #17674.

Disaster loan information and application forms can also be obtained by calling the SBA Customer Service Center at 800-659-2955 (if you are deaf, hard of hearing, or have a speech impediment , please dial 7-1-1 to access telecommunications relay services), or by emailing [email protected]

Loan applications can be downloaded from the SBA website at sba.gov/disaster. Completed applications should be mailed to: US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Submit completed loan applications to SBA by June 5, 2023.

For more information, please refer to this SBA backgrounder or press release.

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