Small businesses and private nonprofit organizations in nine Maine counties can now apply for federal emergency disaster loans.
The U.S. Department of Agriculture recently declared Maine’s lengthy drought a natural disaster, unlocking aid for farmers.
On Tuesday, the U.S. Small Business Administration followed suit, announcing that emergency loans are available for small businesses and nonprofits that are located in Aroostook, Hancock, Kennebec, Knox, Lincoln, Penobscot, Somerset, Waldo and Washington counties and sustained economic losses because of the drought.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” Chris Stallings, associate administrator of the SBA’s Office of Disaster Recovery and Resilience, said in a news release Tuesday. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Those eligible for the SBA’s Economic Injury Disaster Loan program can receive loans up to $2 million with interest rates as low as 4% for small businesses and about 3.6% for nonprofits. Loan totals and conditions will vary based on an applicant’s financial standing, according to the SBA.
The loans can be used for a wide variety of expenses, including debts, payroll and bills that have gone unpaid because of the drought’s effects.
Federal government offers emergency loans to Maine small businesses hurt by drought
