Low Interest Loans Help Pennsylvania Businesses Recover

By Blake Jackson

The U.S. Small Business Administration (SBA) reminds Pennsylvania small businesses and private nonprofit (PNP) organizations that low interest federal disaster loans are available to help offset economic losses caused by the 2024 drought. Eligible counties include Columbia, Luzerne, Lycoming, Montour, Northumberland, Schuylkill, and Sullivan.

Under the Economic Injury Disaster Loan (EIDL) program, eligible businesses, small agricultural cooperatives, nurseries, and nonprofits can apply for financial assistance. These loans are not available to most agricultural producers, farmers, or ranchers, except aquaculture enterprises.

EIDLs provide working capital even if there is no physical damage to the business. Funds may be used for fixed debts, payroll, accounts payable, and other bills delayed because of the drought. “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

Loan amounts may reach up to $2 million, with interest rates starting at 4% for small businesses and 3.25% for nonprofits, and terms up to 30 years. Interest does not accrue, and payments begin 12 months after the first disbursement. Loan terms are based on each applicant’s financial condition.

Applications are accepted online at sba.gov/disaster. Applicants may also call SBA Customer Service at 800-659-2955, or emailing disastercustomerservice@sba.gov. People who are deaf, hard of hearing, or have speech disabilities can dial 7-1-1 for relay services.

The deadline for submitting economic injury applications is April 20. A 60-day grace period follows, allowing SBA to accept applications after the official deadline. These loans help Pennsylvania businesses and nonprofits recover quickly and maintain financial stability after drought impacts.

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