Business

Johnson County businesses receive extra month to apply for up to $2 million in SBA loans

Eligibility based on 'financial impact' of Aug. 10 derecho

Johnson County's eligibility comes afer U.S. Ag Secretary Sonny Perdue's Oct. 20 designation of an agricultural disaster
Johnson County’s eligibility comes afer U.S. Ag Secretary Sonny Perdue’s Oct. 20 designation of an agricultural disaster. (Rebecca F. Miller/The Gazette)

Johnson County businesses will have another month to apply for low-interest loans of up to $2 million through the U.S. Small Business Administration.

Businesses in the county initially had eligibility for the Economic Injury Disaster Loans because of President Donald Trump’s Aug. 17 disaster declaration, with applications due May 20, 2021.

Following U.S. Secretary of Agriculture Sonny Perdue’s Oct. 20 designation of an agricultural disaster, that deadline shifted to June 21, 2021.

The loans — which look to “offset economic losses because of reduced revenues caused by the derecho” — can last up to 30 years at a 3 percent interest rate for businesses and 2.75 percent interest rate for not-for-profits.

“Eligibility for these loans is based on the financial impact of the disaster only and not on any actual property damage,” noted Tanya Garfield, director of SBA’s Disaster Field Operations Center-West, in a news release.

Garfield said the loans are available for businesses either directly affected directly by the derecho or “dependent on farmers and ranchers that have suffered agricultural production losses” because of the derecho.

Ranchers and farmers must go through the Farm Service Agency, not the SBA.

Linn County, Johnson County and several other counties in Eastern Iowa already are eligible for similar low-interest SBA loans for property damage because of the presidential declaration. Those applications are due Nov. 2.

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Applications can be found at disasterloanassistance.sba.gov.

Comments: (319) 398-8394; john.steppe@thegazette.com

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