Significant Factors For SBA Disaster Loans – An Intro
The U.S. Small Business Administration stated recently that federal government economic injury disaster financial loans are available to small business, small agricultural cooperatives, small organizations engaged in aquaculture and most private non-profit associations of any size located in the counties of Dillon and 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,” stated Skaggs.
Under this declaration, the SBA’s Economic Injury Disaster Loan program is readily available to eligible farm-related and also nonfarm-related organizations that encountered monetary losses as a direct result of this disaster. With the exception of aquacultural businesses, agricultural companies, farmers along with ranchers are 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 decides eligibility depending on the size of the applicant, type of activity as well as financial resources. The agency creates loan levels in addition to terms based upon each applicant’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 financing loan is not intended to replace lost sales or profits.