Finding Fast Secrets In SBA Disaster Loans
Posted on January 22, 2012
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The U.S. Small Business Administration announced this week that federal economic damage disaster loans are offered to small businesses, small agricultural cooperatives, small firms engaged in aquaculture and most private non-profit firms of all sizes situated in the counties of Dillon as well as Horry in South Carolina because of Hurricane Irene which took place 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,” said 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,” stated 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 financial losses being a direct result of this calamity. Apart from aquacultural enterprises, agricultural producers, farmers and also 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 determines eligibility in line with the size of the applicant, form of undertaking as well as financial means. The agency establishes loan levels and terms dependent on every candidate’s fiscal 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 loan financing is not intended to replace lost sales or profits.
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