Federal loans offered for drought-stricken southeastern Wisconsin

The Janesville Gazette, Wis.
·2 min read

Jul. 2—ATLANTA — Federal business loans to help in drought-stricken areas of Jefferson, Kenosha, Milwaukee, Racine, Rock, Walworth and Waukesha counties were announced Friday.

The U.S. Small Business Administration said the loans are available to certain small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and private, nonprofit organizations because of drought that began June 15. Farms are not eligible for these loans.

The U.S. Drought Monitor reported Thursday that all of southern Wisconsin continued to experience at least moderate drought, while the southeast corner of Rock County and large swaths of Walworth County were in severe drought.

The southeast corner of Walworth County and most of Kenosha County was in extreme drought.

"The SBA's Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster," according to a news release. "Except for 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 loans are available for up to $2 million with interest rates of 2.88 percent for small businesses and 2 percent for private nonprofit organizations of all sizes, for terms of up to 30 years.

The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant's financial condition.

"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," the release states.

Loan applications must be submitted no later than Feb. 22, 2022.

Applicants may apply online using the Electronic Loan Application via SBA's secure website at DisasterLoanAssistance.sba.gov/ela/s and should apply under SBA declaration #17016, not for the COVID-19 incident.

Disaster loan information and application forms may also be obtained by calling the SBA's Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending email to DisasterCustomerService@sba.gov. Loan applications can be downloaded from sba.gov/disaster.

Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.