SBA Working Capital Loans Available to Small Businesses in Mississippi Due to Continuing Drought

The U.S. Small Business Administration (SBA) announced today that federal Economic injury
Disaster Loans (EIDLs) are available in Mississippi for small businesses, small agricultural cooperatives,
small businesses engaged in aquaculture, and most private nonprofit organizations with economic
losses due to the drought conditions that began on Oct. 17.

The declaration includes Bolivar, Calhoun, Chickasaw, Clarke, Coahoma, Kemper, Lafayette,
Lauderdale, Oktibbeha, Panola, Quitman, Sunflower, Tunica, Webster and Yalobusha counties in
Mississippi; the contiguous counties of Choctaw, Clay, Desoto, Grenada, Humphreys, Jasper, Lee,
Leflore, Lowndes, Marshall, Monroe, Montgomery, Neshoba, Newton, Noxubee, Pontotoc, Tallahatchie,
Tate, Union, Washington, Wayne, Winston in Mississippi; Sumter and Choctaw in Alabama and Desha,
Phillips, Chicot, Lee and Crittenden in Arkansas.

“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 Sanchez Jr., associate
administrator of SBA’s Office of Disaster Recovery & Resilience. “These loans help sustain rural
economies when a disaster occurs.”

Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible
farm-related and nonfarm-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% for small businesses and
2.375% for private nonprofit organizations, with terms up to 30 years. The SBA sets loan amounts and
terms based on each applicant’s financial condition. Interest does not accrue, and payments are not
due until twelve months from the date of the first loan disbursement. 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.

Applicants may apply online using the Electronic Loan Application (ELA) via the SBA’s secure
website at and should apply under SBA declaration # 20042

Disaster loan information and application forms may also be obtained by calling the SBA’s Customer
Service Center at 800-659-2955 (if you are deaf, hard of hearing, or have a speech disability, please dial
7-1-1 to access telecommunications relay services), or sending an email to Loan applications can be downloaded from the SBA’s website at Completed applications should be mailed to: U.S. Small Business Administration,
Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Submit completed loan applications to the SBA no later than June 24, 2024.