An Introduction To No-Fuss Methods Of SBA Disaster Loans

The U.S. Small Business Administration announced recently that federal economic injury catastrophe financial loans are available to small businesses, small agricultural cooperatives, small corporations engaged in aquaculture and the majority of private non-profit firms of all sizes located in the counties of Dillon as well as Horry in South Carolina due to Hurricane Irene which came about in August.

“These counties are eligible because they are contiguous to one or more primary counties in North Carolina. The Small Business Administration recognizes that disasters do not usually stop at county or state lines. For that reason, counties adjacent to primary counties named in the declaration are included,” explained Frank Skaggs, director of SBA’s Field Operations Center East in Atlanta.

“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to assist eligible entities affected by the same disaster,” declared Skaggs.

Under this declaration, the SBA’s Economic Injury Disaster Loan program is accessible to qualified farm-related as well as nonfarm-related organizations that endured financial losses as a direct result of this calamity. Apart from aquacultural organizations, agricultural companies, farmers and ranchers are definitely not eligible to apply to SBA.

Loan options for small business can be up to $2 million, with interest rates of 3 percent for non-profit organizations and 4 percent for small businesses. Terms can be up to 30 years. The SBA decides eligibility based on the size of the applicant, type of activity as well as financial resources. The agency designs financial loan amounts and terms based on each candidate’s economic condition. These may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The small business loan financing is not intended to replace lost sales or profits.