Richardson Announces Federal Loan Program for Farmers Impacted by USDA Declared Drought

COLUMBUS – State Representative Tracy Richardson (R-Marysville) announces Union County farmers and small businesses affected by the United States Agriculture Department’s declaring of a natural disaster due to the state’s ongoing drought can apply for federal emergency loans. 

The USDA declared 22 Ohio counties, Athens, Belmont, Fairfield, Fayette, Gallia, Guernsey, Harrison, Highland, Hocking, Jackson, Jefferson, Madison, Monroe, Morgan, Muskingum, Noble, Perry, Pickaway, Pike, Ross, Vinton and Washington as a natural disaster due to Ohio’s exceptionally hot and dry summer. Alongside the 22 primary counties, 18 surrounding counties are eligible to apply for the U.S. Small Business Administration’s Economic Injury Disaster Loan. This includes Union County.

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.⿯

“This has been a very dry and challenging summer for residents in my district,” Richardson said. “I am hoping that this disaster loan program will provide the assistance needed for those suffering financial losses.” 

The loan amount can be up to $2 million with interest rates of 4% for small businesses and 3.25% for private nonprofit organizations, with terms up to 30 years. Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition. 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. 

For information and to apply online visit SBA.gov/disaster. Applicants may also call the SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov.