SBA offers loans to Sonoma County businesses affected by salmon fishery closure

The U.S. Small Business Administration is now offering low-interest federal disaster loans for working capital to small businesses economically impacted by the California salmon fishery closure from April 6 to October 31. The SBA on November 29 declared a disaster following a request from the state Office of Emergency Services.

The disaster declaration makes SBA assistance available in 31 counties in California, including Sonoma County, and two counties in Oregon. The salmon fishery was closed due to declining Chinook salmon populations.

“Small businesses in Sonoma County that rely on salmon fishing for their livelihood were devastated when the fishery was shut down,” said Supervisor Lynda Hopkins, whose district includes the Sonoma Coast. “This disaster declaration will provide these local businesses with loans to help them recover.”

Small non-farm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred. The loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.

Eligibility is based on the financial impact of the disaster only and not on any actual property damage. The loans have an interest rate of 4 percent for small businesses and 2.375 percent for private nonprofit organizations with terms up to 30 years and are restricted to small businesses without the financial ability to offset the adverse impact without hardship.

Interest does not begin to accrue until 12 months from the date of the first disaster loan disbursement. SBA disaster loan repayment begins 12 months from the date of the first disbursement.

The California Small Business Development Centers are offering free, personalized counseling to help affected businesses in their recovery. Business owners may visit https://www.californiasbdc.org/find-your-sbdc/ to locate an SBDC near you. Visitors are encouraged to call first for an appointment.

Applicants may apply online, receive additional disaster assistance information and download applications at SBA.gov/disaster. Applicants may also call (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

The deadline to apply is August 29, 2024.

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Media Contact:
Gina Stocker, Communications Specialist
publicaffairs@sonoma-county.org
(707) 565-3040
575 Administration Drive, Suite 104A
Santa Rosa, CA 95403