ATLANTA - The U.S. Small Business Administration is reminding small businesses affected by the severe storms, flooding, tornadoes and straight-line winds that occurred between May 3-20, 2009 that March 1 is the filing deadline for Economic Injury Disaster Loans.
Small businesses and most private non-profit organizations in the following counties are eligible to apply for SBA Economic Injury Disaster Loans: Breathitt, Clay, Floyd, Jackson, Johnson, Knott, Lee, Letcher, Magoffin, Martin, Morgan, Owsley, Perry, Pike and Wolfe in Kentucky; Buchanan, Dickenson and Wise in Virginia; and Mingo in West Virginia.
Loans are available up to $2 million for eligible entities that suffered substantial economic injury from the disaster. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. These loans are not intended to replace lost sales or profits.
The interest rate on these loans is 4 percent, with a maximum term of 30 years. The SBA determines the amount of economic injury and the terms of each loan based on the financial circumstances of the borrower. Eligibility for the program is based on the size and type of business, and its financial resources.
To obtain a loan application, interested business owners should contact the SBA’s Customer Service Center by calling 800-659-2955 (800-877-8339 for the hearing-impaired) Monday through Friday from 8 a.m. to 6 p.m. EST or by sending an e-mail to firstname.lastname@example.org. Business disaster loan applications can also be downloaded from www.sba.gov/services/disasterassistance. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Victims may visit the SBA’s secure Web site at https://disasterloan.sba.gov/ela/ to apply for disaster loans.
The deadline for economic injury applications is March 1, 2010.