SBA economic injury loans available

by Wally Northway

Published: December 7,2009

Tags: disaster recovery, federal agency, small businesses

ACROSS MISSISSIPPI — The U.S. Small Business Administration (SBA) is making federal economic injury disaster loans available to small businesses, small agricultural cooperatives and most private non-profit organizations of all sizes located in entire State of Mississippi as a result of the combined effects of spring and fall excessive rainfall and flooding and summer 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 assist small businesses, small agricultural cooperatives and most private non-profit organizations affected by the same disaster,” said Frank Skaggs, director of SBA’s Field Operations Center East.

Under this declaration, the SBA’s Economic Injury Disaster Loan program is available to farm-related and non-farm-related small business concerns, small agricultural cooperatives and most private non-profit organizations of all sizes that suffered financial losses as a direct result of this disaster. Farmers and ranchers are not eligible to apply to SBA, but nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.

Eligible small businesses and non-profit organizations may qualify for loans up to $2 million. These loans are available at a 4 percent interest rate with loan 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. Under this disaster declaration, the SBA cannot provide loans to agricultural producers.

Disaster victims should contact the SBA’s Customer Service Center by calling 1-800-659-2955 (1-800-877-8339 for the hearing-impaired) Monday through Friday from 8 a.m. to 9 p.m., EST or by sending an e-mail to disastercustomerservice@sba.gov. Loan applications can be downloaded from the SBA’s web site at www.sba.gov/services/disasterassistance.

Completed loan applications must be returned to SBA no later than July 13, 2010.

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