SBA Reminds Pennsylvania Small Businesses of Upcoming Deadline for Drought Relief Loans

The U.S. Small Business Administration (SBA) is urging small businesses and private nonprofit organizations in Pennsylvania and West Virginia affected by the September 2024 drought to apply for federal disaster loans before the June 2, 2025 deadline.

The assistance comes under a disaster declaration for Greene, Fayette, and Washington counties in Pennsylvania and Marshall, Monongalia, and Wetzel counties in West Virginia. Eligible applicants include small businesses, small agricultural cooperatives, aquaculture enterprises, and private nonprofits (PNPs) that experienced financial losses due to the drought that began on September 24, 2024.

“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

SBA’s Economic Injury Disaster Loan (EIDL) program provides working capital loans to help eligible entities cover financial obligations and operating expenses that could have been met had the disaster not occurred. The loans are available even to those that did not sustain physical damage.

Loan funds may be used to pay fixed debts, payroll, accounts payable, and other bills impacted by the disaster. However, the SBA notes that agricultural producers, farmers, or ranchers—except for small aquaculture enterprises—are not eligible for this assistance under the current declaration.

Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.25% for nonprofits. Terms can extend up to 30 years. No payments are required, and interest does not accrue until 12 months after the first disbursement. Loan terms and amounts are determined by the SBA based on each applicant’s financial circumstances.

Applicants may apply online at sba.gov/disaster or contact the SBA’s Customer Service Center by phone at (800) 659-2955 or by email at disastercustomerservice@sba.gov. Individuals who are deaf, hard of hearing, or have a speech disability can access telecommunications relay services by dialing 7-1-1.

All completed loan applications must be submitted to the SBA no later than June 2, 2025.

This article, "SBA Reminds Pennsylvania Small Businesses of Upcoming Deadline for Drought Relief Loans" was first published on Small Business Trends

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