- Economic Injury Disaster Loans made available to aquaculture concerns, small businesses, and others in Connecticut affected by drought
- Hot, dry summer has led to depletion of groundwater and request for voluntary water conservation measures
- Loans of up to $2 million available to entities that suffered economic losses due to the drought
The U.S. Small Business Association has announced that farms, small businesses, and others who suffered economic losses due to recent drought conditions in Connecticut are eligible for emergency loans.
The SBA’s Disaster Field Operations Center – East says small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and private nonprofit organizations can apply for Economic Injury Disaster Loans. Connecticut entered Stage 2 drought conditions due to hot summer conditions and a prolonged shortage of precipitation, resulting in dry soil and depleted groundwater. Residents have been asked to take voluntary water conservation measures, including reducing outdoor irrigation and postponing the planting of new lawns or vegetation.
Any entities that suffered economic losses as a result of drought conditions can apply for a loan of up to $2 million, which includes a 30-year term and rates of 3 percent for small businesses and 2.75 percent for nonprofit organizations. The loans are intended to cover costs that could have been met had the drought not occurred, such as payroll and accounts payable, rather than replace lost sales or profits.
Nurseries and aquaculture operations are eligible for the loans. However, SBA cannot lend funds to agricultural producers, farmers, or ranchers.
Applicants can apply online using the Electronic Loan Application (ELA) at DisasterLoan.sba.gov, using the SBA declaration #16738 rather than the COVID-19 designation. They can also receive more information by calling the SBA’s Customer Service Center at 800-659-2955. Applications must be submitted by June 15.
