“Eligibility for these working capital loans is based on the financial
impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4%, a maximum term of 30 years,
and are restricted to small businesses without the financial ability to offset
the adverse impact without hardship,” Judd said. By law, SBA makes EIDLs
available when the U. S. Secretary of Agriculture designates an agricultural
disaster. Secretary Mike Johanns declared this disaster at the
request of Governor Arnold Schwarzenegger. Businesses primarily engaged
in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the
Farm Services Agency (FSA) about the U. S. Department of Agriculture (USDA)
assistance made available by the Secretary’s declaration. However, in drought disasters nurseries are
eligible for SBA loans. For information and application forms, call toll
free (800) 659-2955, or visit SBA’s website at
www.sba.gov/services/disasterassistance.
Hearing impaired individuals may call (800) 877 8339. The
deadline to apply for these loans is October 9, 2007.
Tuesday, 27 February 2007 02:37
Small Businesses Eligible For Disaster Loans After This Years Cold Front Causes Economic Losses
Small businesses in Alpine, Amador, Calaveras, El Dorado, Sacramento,
San Joaquin, Stanislaus and Tuolumne counties may now apply for low interest
disaster loans from the U. S. Small Business Administration (SBA). “These
disaster loans offset economic losses because of reduced revenues caused by the
extremely low temperatures and drought in Amador and Calaveras counties
beginning January 1, 2007,” said Alfred E. Judd, Director of
SBA’s Disaster Field Operations Center - West. Small businesses may qualify for
Economic Injury Disaster Loans (EIDLs) of up to $1.5 million to help meet
financial obligations and operating expenses which could have been met had the
disaster not occurred.
