Deadlines Approaching in Oregon for SBA Working Capital Loans Due to Drought

SACRAMENTO, Calif. – Director Tanya N. Garfield of the U.S. Small Business Administration’s Disaster Field Operations Center-West today reminded Oregon small nonfarm businesses of the deadline dates to apply for an SBA federal disaster loan for economic injury. These low-interest loans are to offset economic losses because of reduced revenues caused by drought in the following primary counties in Oregon.

Declaration Number:   16511
Primary  Counties:   Clackamas, Deschutes, Multnomah, Washington and Yamhill
Neighboring Counties:   Clatsop, Columbia, Crook, Harney, Hood River, Jefferson, Klamath, Lake, Lane, Linn, Marion, Polk, Tillamook and Wasco in Oregon; and Clark and Skamania in Washington
Incident Type:   Drought
Incident Date:   Beginning April 18, 2020
Deadline:   02/24/21
 
Declaration Number:   16525
Primary  Counties:   Grant, Harney and Lake
Neighboring Counties:   Baker, Crook, Deschutes, Klamath, Malheur, Morrow, Umatilla, Union and Wheeler in Oregon; Modoc in California; and Humboldt and Washoe in Nevada
Incident Type:   Drought
Incident Date:   Beginning May 1, 2020
Deadline:   03/02/21

According to Garfield, small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may apply for Economic Injury Disaster Loans of up to $2 million to help meet working capital needs caused by the disasters. “Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disasters’ impact,” said Garfield. 

“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disasters and businesses directly impacted by the disasters. Economic injury assistance is available regardless of whether the applicant suffered any property damage,” Garfield added.

The interest rate is as low as 3 percent for businesses and 2.75 percent for private nonprofit organizations with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.

By law, SBA makes Economic Injury Disaster Loans available when the U.S. Secretary of Agriculture designates an agricultural disaster. The Secretary declared declaration OR 16511 on June 24, 2020; and declaration OR 16525 on July 2, 2020.

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, in drought disasters nurseries are eligible for SBA disaster assistance.

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX  76155.