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SBA Loan Helps Small Businesses Deal with Disaster
Published on Jul 21, 2011
Read our article, 'SBA Loan Helps Small Businesses Deal with Disaster' at 'Time to Start Up,' the small business blog by BizFilings.
Disaster can strike at any time, and may leave some small businesses reeling from its destruction. Small businesses devastated by disasters may qualify for federal economic injury disaster loans in specific areas (counties) of states.
“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,” said Frank Skaggs, director of the U.S. Small Business Administration’s Field Operation Center East, in Atlanta.
Counties in New York damaged by hail and flooding, and in Tennessee and Missouri that experienced harsh tornadoes, are just a few counties across the nation that are eligible for the loan this year. Small businesses can receive up to $2 million with an interest rate of 4 percent. However, loan amounts and terms are determined by the SBA.
Intended to pay fixed debts, payroll, accounts payable, and other bills, the loans are not meant to cover lost sales or profits. The deadline to apply for the loan in most states is in mid-August.
“Getting businesses and communities up and running after a disaster is our highest priority at SBA,” said SBA Administrator Karen G. Mills.