HAGERSTOWN, Md. — A disaster loan program is now available in select Maryland and Pennsylvania counties, due to recent drought conditions, officials of the Washington County Department of Business and Economic Development have announced.
These Economic Injury Disaster Loans are available in Maryland for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations with economic losses due to drought that began on July 16. They are administered through the federal Small Business Administration.
The declaration includes the primary county of Allegany and the adjacent counties of Garrett and Washington in Maryland and Bedford, Fulton and Somerset in Pennsylvania.
“Working capital loans from the SBA are essential to eligible small businesses when the Secretary of Agriculture declares a disaster due to farmers’ crop losses,” said Francisco Sánchez, Jr., associate administrator for the SBA’s Office of Disaster Recovery and Resilience. “These loans help sustain rural economies when a disaster occurs.”
Under this declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible farm-related and non-farm-related entities that suffered financial losses as a direct result of this disaster. Apart from aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, and ranchers. Nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.
The loan amount can be up to $2 million with interest rates of 4 percent for small businesses and 3.25 percent for private nonprofit organizations, with terms up to 30 years. Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition. Eligibility is based on the size of the applicant, type of activity and its financial resources. These working capital loans may be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.
For information and to apply online people may visit SBA.gov/disaster. Applicants may also call the SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. People who are deaf, hard of hearing or have a speech disability may dial 7-1-1 to access telecommunications relay services.
The deadline for completed loan applications to SBA no later than March 31, 2025.
