News by SB Informer

SBA Disaster Loan Deadline is May 22

Small Business Owners Still Have Time to Apply

SB Informer
Friday, April 21, 2006; 06:00 AM

CINCINNATI - The U.S. Small Business Administration (SBA) is reminding businesses of the May 22 filing deadline for federal disaster loans that are available to small, non-farm, agriculture- dependent businesses located in the State of Ohio.

"SBA's disaster declaration was issued as a result of a similar action taken by the Secretary of Agriculture to help farmers recover from damages and losses to crops caused by drought and excessive heat that occurred on May 25, 2005 and continuing," according 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, but nurseries are eligible to apply for economic injury caused by drought conditions.

Eligible small businesses may qualify for loans up to $1.5 million. These loans are available at 4.000 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.

"SBA can help these small businesses overcome their economic injuries by offering these working capital loans, but the help cannot start until they apply," Skaggs added.

Interested business owners should contact SBA's National Customer Service Center by calling 1-800-659-2955 (800-877-8339 for the hearing impaired); Monday through Saturday from 8:00 a.m. until 9:00 p.m. EDT. Business loan applications can also be downloaded from the SBA's website at http://www.sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, National Processing and Disbursement Center - 14925 Kingsport Road, Fort Worth, TX 76155.

Completed loan applications must be returned to SBA no later than May 22, 2006.

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

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