The U.S. Small Business Administration revealed this week that federal government economic injury catastrophe financial loans are available to smaller businesses, small farm cooperatives, small businesses engaged in aquaculture and the majority of private non-profit associations of all sizes found in the counties of Dillon and Horry in South Carolina as a consequence of Hurricane Irene which took place 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,” said 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 suitable farm-related and nonfarm-related companies that encountered financial losses being a direct result of this calamity. Aside from aquacultural enterprises, agricultural companies, farmers and also ranchers are not eligible to 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 determines eligibility dependant upon the size of the prospect, form of undertaking along with its financial assets. The agency designs financial loan amounts and terms based upon every candidate’s fiscal affliction. These SBA small business 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 small business loan financing is not intended to replace lost sales or profits.