Significant Criteria For SBA Disaster Loans Clarified
The U.S. Small Business Administration reported in the week that federal economic damage disaster financial loans are offered to small companies, small farming cooperatives, small businesses operating in aquaculture and most private non-profit establishments of any size found in the counties of Dillon as well as Horry in South Carolina because of Hurricane Irene that 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,” noted 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,” said Skaggs.
Under this declaration, the SBA’s Economic Injury Disaster Loan program is accessible to suitable farm-related and nonfarm-related companies that encountered monetary losses as a direct consequence of this catastrophe. With the exception of 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 candidate, type of undertaking and its financial means. The agency establishes loan levels and terms dependent upon each and every candidate’s financial affliction. These 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 financing loan is not intended to replace lost sales or profits.
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