SBA Economic Injury Disaster Loans Now Available
By Carrie Stanbaugh
Certain small businesses, farming cooperatives and nonprofits in Panola County that suffered financial losses due directly to the excessive rain and flooding plagued the south this spring can now apply for disaster loan assistance through the Small Business Administration.
This week the U.S. Small Business Administration announced that Economic Injury Disaster Loans are available to small businesses, small agriculture cooperatives, small businesses engaged in aquaculture and private nonprofit organizations who suffered damage from the rains and flood that occurred from April 1 through June 30. It follows a disaster declaration by the Secretary of Agriculture.
Under the declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of the disaster. Except for aquaculture enterprises, SBA cannot provide disaster loans to agriculture producers farmers and ranchers. Nurseries are also not eligible for loans under this disaster declaration.
Loans up to $2 million are available for small businesses, at a rate of 3.75 percent, and private non-profit organizations, at a rate of 2.75 percent, with terms up to 30 years. Applications must be submitted by July 6, 2021. 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 conditions.
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. Only uninsured or otherwise uncompensated disaster losses are eligible.
Applicants must have a credit history acceptable to the SBA, and collateral is required for all loans over $25,000.
Applicants may apply online using the Electronic Loan Application via SBAs secure website at DisasterLoan.sba.gov and should apply under SBA declaration #16776, not for the Covid-19 incident.
Information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800.659.2955 (800.877.8339 for the deaf and hard-of-hearing) or by sending an email to DisasterCustomerService@sba.gov. Loan applications can be downloaded from sba.gov/disaster.
Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.