The U.S. Small Business Administration declared this week that federal economic injury disaster financial loans are offered to small businesses, small farm cooperatives, small corporations engaged in aquaculture and most private non-profit organizations of all sizes located in the counties of Dillon and Horry in South Carolina because of Hurricane Irene which occurred 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,” explained 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,” said Skaggs.
Under this declaration, the SBA’s Economic Injury Disaster Loan program is readily available to suitable farm-related and nonfarm-related entities that endured economic losses as a direct result of this calamity. Apart from aquacultural enterprises, agricultural producers, farmers along with 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 decides eligibility depending on the size of the candidate, form of undertaking and its financial resources. The agency creates loan levels in addition to terms dependent upon each candidate’s financial 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 financing loan is not intended to replace lost sales or profits.