News by SB Informer

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SBA Application Deadline Approaching for the October Flooding

SB Informer
Wednesday, August 23, 2006; 08:43 AM

The U.S. Small Business Administration (SBA) is reminding businesses that one month remains to submit disaster loan applications for Economic Injury caused by the severe flooding occurring October 14-15, 2005.

The deadline to file an application for Economic Injury is September 21, 2006. Businesses that sustained Economic Injury in the declared counties of Hartford, Litchfield and Tolland and contiguous counties of Fairfield, Middlesex, New Haven, New London and Windham in the State of Connecticut and contiguous counties of Berkshire, Hampden and Worcester in the Commonwealth of Massachusetts and the contiguous county of Dutchess in the State of New York are eligible to apply.

Economic Injury Disaster Loans (EIDLs) up to $1.5 million are available to small businesses, which are unable to pay bills or meet operating expenses because of the disaster. These loans are available at a 4 percent interest rate with terms up to 30 years. SBA determines eligibility for the program based on the size and type of business and its financial resources. Loan amounts and terms are set by SBA and are based upon each applicant's financial condition.

"Disaster victims with insurance should not wait for a settlement before applying to SBA. If victims do not know how much of their loss will be covered by insurance or other sources, SBA will consider making a loan for the total loss up to its loan limits, provided the borrower agrees to use insurance proceeds to reduce or repay their SBA loan," said Frank Skaggs, Director of SBA Field Operations Center East.

Applications and program information remain available by calling the SBA's Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the hearing impaired), Monday through Saturday from 8 a.m. until 9 p.m. EDT. For further information on the qualifications for this loan, or to download the SBA Business Loan application, visit our website at http://www.sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Ft. Worth, TX. 76155.

Completed loan applications must be returned to SBA no later than September 21, 2006. For more information about the SBA's Disaster Loan Programs, visit our website at http://www.sba.gov/disaster