Clear-Cut Programs In SBA Disaster Loans Explained
Posted by admin | Uncategorized | Posted on January 22nd, 2012
The U.S. Small Business Administration announced this week that federal economic injury disaster loans are offered to small businesses, small farming cooperatives, small firms engaged in aquaculture and most private non-profit firms of all sizes found in the counties of Dillon and Horry in South Carolina because of Hurricane Irene which took place 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,” noted 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,” stated Skaggs.
Under this declaration, the SBA’s Economic Injury Disaster Loan program is readily available to qualified farm-related as well as nonfarm-related entities that endured monetary losses as a direct result of this disaster. Except for aquacultural businesses, agricultural producers, farmers and ranchers are definitely not eligible to a href=”http://www.sba.gov/content/how-apply-sba-loan”>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 ascertains eligibility depending on the size of the candidate, type of undertaking as well as financial assets. The agency designs loan levels in addition to terms dependent upon each and every applicant’s financial 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 financing loan is not intended to replace lost sales or profits.