The U.S. Small Business Administration revealed this week that federal economic injury disaster financial loans are available to small business, small farming cooperatives, small businesses operating in aquaculture and the majority of private non-profit establishments of all sizes based in the counties of Dillon along with Horry in South Carolina as a result of Hurricane Irene that came about 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,” noted 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 available to qualified farm-related along with nonfarm-related entities that sustained economic losses as a direct result of this calamity. With the exception of aquacultural organizations, 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 prospect, form of activity as well as financial means. The agency designs financial loan amounts as well as terms dependent on each and every applicant’s financial condition. The 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.