SBA disaster loan application deadline next month

THE U.S. Small Business Administration said that the deadline to apply for Economic Injury Disaster Loans is July 5.
THE U.S. Small Business Administration said that the deadline to apply for Economic Injury Disaster Loans is July 5.

PROVIDENCE – As a result of the drought that began on April 1, 2015, the U.S. Small Business Administration said that the deadline to apply for Economic Injury Disaster Loans is July 5 for eligible small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and private nonprofit organizations in Kent, Providence and Washington counties in Rhode Island.

“These counties are eligible because they are contiguous to one or more primary counties in Connecticut. 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,” Frank Skaggs, director of SBA’s Field Operations Center East in Atlanta, said in prepared remarks.

Eligible farm-related and non-farm related entities that suffered financial loss as a direct result of this drought can apply for the SBA’s Economic Injury Disaster Loan Program. However, with aquaculture enterprises being the exception, the SBA cannot provide loans to agricultural producers, farmers and ranchers. Nurseries can apply for loans if they have economic losses caused by the drought.

Loans for working capital range upwards of $2 million with an interest rate of 4 percent for small businesses and 2.625 percent for nonprofits, with terms up to 30 years.

- Advertisement -

The SBA determines loan eligibility based on the size of the applicant, type of activity and financial resources. Loan amounts and term are based on financial condition.

Working capital loans can be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the drought not hit, but they are not intended to replace lost sales or profits.

Applicants may apply online using the Electronic Loan Application HERE.
Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov.

No posts to display