SBA announces disaster loans for drought

Lincoln, Pipestone and Rock on list of affected counties

Businesses and nonprofits in three southwest Minnesota counties may be eligible for disaster assistance due to drought this spring and summer, the U.S. Small Business Administration said.

This week, the SBA announced that Lincoln, Pipestone and Rock counties were included in a list where low-interest federal disaster loans were available for businesses and private nonprofits impacted by drought.

The SBA's full list of counties where businesses, nonprofits and small agricultural cooperatives may be eligible for Economic Injury Disaster Loans included counties in South Dakota, Iowa and Nebraska. The area was impacted by drought that started April 15, and is ongoing, the SBA said. The loans provide working capital assistance for operational expenses caused by the drought.

The SBA said applicants could receive up to $2 million in loan funding, with loan terms of up to 30 years. Interest rates can be as low as 4% for small businesses, and 3.625% for private nonprofit organizations.

The deadline to apply for economic injury loans is May 10, the SBA said. Businesses and organizations can apply online, at https://www.sba.gov/disaster/.

According to U.S. Drought Monitor data released Sept. 17, most of Lincoln, Pipestone and Murray Counties, and part of Lyon County are in severe drought. Rock, Yellow Medicine, Redwood and part of Lyon County are also in moderate drought. The area impacted by drought extends into the Dakotas and Nebraska.

The U.S. Drought Monitor's September drought outlook showed drought conditions persisting across much of the region, including Minnesota, this month.

The seasonal precipitation outlook from the National Weather Service Climate Prediction Center said nearly all of Minnesota had equal chances of getting either more or less precipitation than normal in October through December. The outlook for the extreme southwest corner of the state was leaning toward above-normal precipitation.