Posted: Monday, August 27th 2012 at 3:36pm
Loans available to North Ga. businesses hit by drought
UNDATED - The U.S. Small Business Administration announced Monday that federal economic injury disaster loans are available to small businesses in our area that have been affected by the ongoing drought.
The SBA's disaster declaration includes Banks, Barrow, Dawson, Forsyth, Gwinnett, Habersham, Hall, Jackson, Lumpkin and White counties.
Under this declaration, the SBA's Economic Injury Disaster Loan program is available to eligible farm-related and non farm-related entities that suffered financial losses as a direct result of the drought.
“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.
With the exception of aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, or rancher. 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. 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 https://disasterloan.sba.gov/ela.
Link: SBA website:
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