Small non-farm businesses encouraged to apply for SBA loans for drought recovery

The US Small Business Administration is offering assistance to small, nonfarm businesses in Hawaiʻi through low-interest federal disaster loans to offset economic losses caused by ongoing drought.

The deadline is approaching for Oʻahu applicants seeking relief from economic harm caused by the drought that began last autumn; and new eligibility has been declared for economic injury to businesses in Hawaiʻi, Maui, and Kalawao counties.

The SBA loans are available to nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations in the City and County of Honolulu and in Hawaiʻi, Kalawao, and Maui counties.

Loans of up to $2 million are available to help meet working capital needs caused by the disaster.

Information for Hawaiʻi, Kalawao, and Maui county applicants

• US Secretary of Agriculture Thomas Vilsack declared the disaster April 8, 2022 for drought that began Feb. 8, 2022.
• The deadline to apply is Dec. 8, 2022.
• Interest rates are 2.94 percent for businesses and 1.875% for private nonprofit organizations, with terms up to 30 years.
• Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.

Information for City and County of Honolulu applicants

• US Secretary of Agriculture Thomas Vilsack declared the disaster Sept. 10, 2021 for drought beginning July 20, 2021.
• Applications for the low-interest loans are due by May 10, 2022.
• The interest rate is 2.88 percent for businesses and 2% for private nonprofit organizations, with terms up to 30 years.
• Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.

Applicants may apply online, receive additional disaster assistance information and download applications here. Completed applications may be mailed to US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Applicants may also call SBA’s Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.

People who are deaf, hard of hearing, or have a speech disability can dial 7-1-1 to access telecommunications relay services.