WASHINGTON, D.C. — Coming on the heels of disaster declarations by the USDA, the U.S. Small Business Administration (SBA) has begun announcing that low-interest disaster loans are available for ag businesses affected by this year’s drought.

The USDA disaster declarations automatically qualify crop growers for low-interest loans, and the SBA usually follows suit a matter of a few weeks later, said SBA spokesman Michael Lampton.

“This is by far one of the worst droughts we’ve ever experienced,” he said. “Hopefully this assistance will help the businesses that have suffered through this year.”

Ag cooperatives, aquaculture operations and most nonprofits in disaster-designated counties are eligible to receive loans of up to $2 million at interest rates of 4 percent for businesses and 3 percent for nonprofits. Loan terms can vary, but can extend for up to 30 years.

“At this point, we have no idea or way of knowing exactly how many will apply,” Lampton said.

Through Aug. 23, the USDA has declared a total of 1,821 counties in 35 states as disaster areas because of drought conditions, but several adjacent counties are also eligible for low-interest loans. That total now exceeds 2,200, and it includes all 92 Indiana counties and all 102 counties in Illinois – two states hit hardest by dry conditions this year.

In all of those counties, crop growers are eligible for USDA loans.

The SBA declarations last week so far cover just a portion of the counties designated by the USDA, but more declarations will be made in coming weeks, Lampton said. Through the week of Aug. 24, the SBA announced ag businesses in the following counties are eligible for loans beginning immediately:

In Illinois: Boone, Bureau, Cook, DeKalb, DuPage, Ford, Fulton, Grundy, Henderson, Henry, Iroquois, Kane, Kankakee, Kendall, Knox, LaSalle, Lake, Lee, Livingston, Marshall, McHenry, Mercer, Ogle, Peoria, Putnam, Rock Island, Stark, Warren, Whiteside, Will and Winnebago.

In Iowa, the counties designated were Des Moines, Louisa and Muscatine.

In Indiana, the counties designated last week were Lake and Newton.

In Michigan, the counties include Branch, Cass, Hillsdale and Saint Joseph.

In Ohio: Allen, Auglaize, Butler, Clermont, Darke, Defiance, Fulton, Hamilton, Hancock, Henry, Lucas, Mercer, Montgomery, Paulding, Preble, Putnam, Van Wert, Warren, Williams and Wood. In Kentucky is Boone County.

Lampton said businesses generally have up to nine months to apply for SBA loans, which can be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred. Loans are not intended to replace lost sales or profits.

To apply online, go to https://disasterloan.sba.gov/ela or call the SBA toll free at 800-659-2955.