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Virginians may still apply for drought relief through Small Business Administration

Rebecca Barnabi

The U.S. Small Business Administration (SBA) reminds Virginia small businesses and private nonprofit (PNP) organizations of the April 28, 2025 deadline to apply for low interest federal disaster loans to offset economic losses caused by the drought on July 2, 2024.

The disaster declaration covers the counties of Alleghany, Augusta, Bath, Highland and Rockbridge, as well as Greenbrier and Pocahontas counties in West Virginia.

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

Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives and PNPs with financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.

EIDLs are available for working capital needs caused by the disaster and are available even if the business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable and other bills not paid due to the disaster.

The loan amount can be up to $2 million with interest rates as low as 4 percent for small businesses and 3.25 percent for PNPs, 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.

Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for information on SBA disaster assistance. For people who are deaf, hard of hearing or have a speech disability, dial 7-1-1 to access telecommunications relay services.

Completed loan applications to SBA must be completed no later than April 28, 2025.

Rebecca Barnabi

Rebecca Barnabi

Rebecca J. Barnabi is the national editor of Augusta Free Press. A graduate of the University of Mary Washington, she began her journalism career at The Fredericksburg Free-Lance Star. In 2013, she was awarded first place for feature writing in the Maryland, Delaware, District of Columbia Awards Program, and was honored by the Virginia School Boards Association’s 2019 Media Honor Roll Program for her coverage of Waynesboro Schools. Her background in newspapers includes writing about features, local government, education and the arts.