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SBA Disaster Loans Available Following Secretary of Agriculture Disaster Declaration in Maine

SB Informer
Thursday, November 9, 2006; 03:20 AM

The U.S. Small Business Administration (SBA) announces that federal disaster loans are available to small, non-farm, agriculture-dependent businesses located in all counties in the State of Maine as a result of losses to strawberries caused by the combined effects of excessive rain and wet conditions that occurred December 2, 2005 through March 3, 2006 and May 13, 2006 through June 30, 2006.

"SBA's disaster declaration was issued as a result of a similar action taken by the Secretary of Agriculture to help farmers recover from losses," said Frank Skaggs, Director of SBA Field Operations Center East.

Under this declaration, SBA's Economic Injury Disaster Loan (EIDL) program is available to small, non-farm, agriculture-dependent businesses and small agricultural cooperatives that suffered economic injury as a direct result of the weather's effect on agricultural producers. A business that sells goods/services to agricultural producers may be unable to pay bills and/or meet expenses because of the reduced purchasing power of farmers and ranchers. Examples of eligible businesses are, but not limited to, farm implement dealers, seed and feed stores, and spraying and irrigation businesses. Farmers and ranchers are not eligible to apply to SBA.

Eligible small businesses may qualify for loans up to $1.5 million. These loans are available at a 4 percent interest rate with loan 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. Under this disaster declaration, SBA cannot provide loans to agricultural producers, and cannot provide loans to non-agricultural dependent businesses.

Interested business owners should contact SBA's Customer Service Center by calling 1-800-659-2955 (1-800-877-8339 for the hearing-impaired), Monday through Saturday from 8 a.m. until 12 a.m. (midnight) and Sunday from 12 p.m. (noon) until 12 a.m. (midnight) EST. Business loan applications can also be downloaded from the SBA's website at www.sba.gov/services/disasterassistance. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Completed loan applications must be returned to SBA no later than June 12, 2007.

For more information about the SBA's Disaster Loan Programs, visit our website at www.sba.gov/services/disasterassistance.