FOR IMMEDIATE RELEASE
January 27, 2016
One Month Left to Apply for SBA Disaster Loans
The February 24, 2016 deadline to apply for a Small Business Administration (SBA) disaster loan is quickly approaching. The low-interest loans are designed to offset economic losses due to reduced revenues caused by the 2015 drought.
Small nonfarm businesses, agricultural cooperatives, and most private nonprofit organizations are eligible to apply for Economic Injury Disaster Loans of up to $2 million to help meet working capital needs caused by the disaster. The loan may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid due to the impact of the disaster.
SBA disaster loans can be used for businesses that have been directly impacted by the disaster. The SBA loan can also be used to cover economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses due to the disaster. Economic injury disaster loan assistance is available regardless of whether the applicant suffered any property damage.
Interest rates for the loans range from 2.625 to 4 percent, with terms of up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance, but can contact the Farm Services Agency about the U.S. Department of Agriculture assistance made available by the drought declaration.
Applicants may apply online using an electronic loan application through SBA’s secure website at https://disasterloan.sba.gov/ela. Disaster loan information and application forms are also available from the Small Business Administration at (800) 659-2955 or emailing firstname.lastname@example.org. Hearing-impaired individuals may call (800) 877-8339. For additional disaster assistance information or to download applications, visit http://www.sba.gov/disaster.