SBA economic injury disaster loans available to Idaho small businesses

Boundary County small non-farm businesses may be eligible for low‑interest federal disaster loans from the U.S. Small Business Administration.

Seven Idaho counties and neighboring counties in Montana and Washington are now eligible to apply for low‑interest federal disaster loans

These loans offset economic losses because of reduced revenues caused by drought in the following primary counties that began July 11.

Primary area eligible are Bonner, Boundary and Shoshone counties, as well as neighboring counties in Idaho, Washington and Montana. In Idaho, those counties are Benewah, Clearwater, Kootenai and Latah; in Montana, they are Lincoln, Mineral and Sanders; and in Washington, they are Pend Oreille and Spokane.

The deadline to apply for economic injury is May 6, 2024.

“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster,” Director Jeffrey Lusk of SBA’s Disaster Field Operations Center-West.

Small non-farm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.

“Eligibility for these loans is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4% for businesses and 2.375% for private nonprofit organizations, a maximum term of 30 years and are available to small businesses and most private nonprofits without the financial ability to offset the adverse impact without hardship,” Lusk said.

Interest does not begin to accrue until 12 months from the date of the initial disaster loan disbursement. SBA disaster loan repayment begins 12 months from the date of the first disbursement.

By law, SBA makes economic injury disaster loans available when the U.S. Secretary of Agriculture designates an agricultural disaster. The secretary declared this disaster on Sept. 6.

Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency about the U.S. Department of Agriculture assistance made available by the Secretary’s declaration. However, nurseries are eligible for SBA disaster assistance in drought disasters.

Loan eligibility restrictions:

• The applicant business must be located in the declared disaster area.

• Only uninsured or otherwise uncompensated disaster losses are eligible.

• The economic injury must have been the direct result of the declared disaster.

• Nurseries are only eligible for economic injury caused by declared drought disasters.

• By law, agricultural enterprises such as farmers and ranchers are not eligible for any type of SBA assistance.

• Applicants who have not complied with the terms of previous SBA loans are not eligible. This includes borrowers who did not maintain flood and/or hazard insurance on previous SBA loans.

• Loan assistance is available only to the extent the business and its owners cannot meet necessary financial obligations due to the disaster. This determination is made by SBA.

Applicants may apply online, receive additional disaster assistance information and download applications at disasterloanassistance.sba.gov/.

Applicants may also call SBA’s Customer Service Center at 1-800-659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.

For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.