Loans Available For Businesses Affected By Drought
By Space Coast Daily // December 29, 2012
Applications Offered Online
BREVARD COUNTY, FLORIDA – The U.S. Small Business Administration has announced that federal economic injury disaster loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations of all sizes located in Florida as a result of the drought that began on Jan. 1.
“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 eligible entities affected by the same disaster,” said Frank Skaggs, director of SBA’s Field Operations Center East in Atlanta.
Under this declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities in Brevard County that suffered financial losses as a direct result of the ongoing drought.
With the exception of aquacultural enterprises, agricultural producers, farmers and ranchers are not eligible to apply to SBA. Nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.
The loan amount can be up to $2 million with interest rates of 3 percent for private non-profit organizations of all sizes and 4 percent for small businesses, with terms up to 30 years.
Based On Applicant’s Financial Condition
The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at DisasterLoan.SBA.gov
Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Loan applications must be returned to SBA no later than March 12, 2013.
Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 or by email at DisasterCustomerService@SBA.