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Disaster Assistance Available for Small Businesses
Sacramento, CA – Small, non-farm businesses in 12 Colorado counties and neighboring counties in Arizona, New Mexico and Utah are now eligible to apply for low-interest disaster loans from the U. S. Small Business Administration (SBA). “These loans offset economic losses because of reduced revenues caused by the drought that began April 15, 2009 in the following Colorado primary counties,” announced Alfred E. Judd, Director of SBA’s Disaster Field Operations Center - West.
Primary Colorado counties: Dolores, Mesa, Montezuma, Montrose and San Miguel;
Neighboring Colorado counties: Delta, Garfield, Gunnison, La Plata, Ouray, Pitkin and San Juan;
Neighboring Arizona county: Apache;
Neighboring New Mexico county: San Juan;
Neighboring Utah counties: Grand and San Juan.
“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster,” Judd said.
Small, non-farm businesses, small agricultural cooperatives and most private, non-profit organizations of any size may qualify for Economic Injury Disaster Loans (EIDLs) of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.
“Eligibility for these loans is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4%, a maximum term of 30 years, and are available to small businesses and most private, non-profits without the financial ability to offset the adverse impact without hardship,” Judd said.
By law, SBA makes EIDLs available when the U. S. Secretary of Agriculture designates an agricultural disaster. Secretary Tom Vilsack declared this disaster at the request of Governor Bill Ritter, Jr.
Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency (FSA) about the U. S. Department of Agriculture (USDA) assistance made available by the Secretary’s declaration. However, in drought disasters nurseries are eligible for SBA disaster assistance.
Information and application forms are available from SBA’s Customer Service Center by calling (800) 659-2955, emailing firstname.lastname@example.org, or visiting SBA’s Web site at www.sba.gov/services/disasterassistance. Hearing impaired individuals may call (800) 877-8339. Applicants may also apply online using the Electronic Loan Application (ELA) via SBA’s secure Web site at https://disasterloan.sba.gov/ela.
The deadline to apply for these loans is September 28, 2010.
SBA Field Operations Center - West, P.O. Box 419004, Sacramento, CA 95841