SBA Economic-Injury Disaster Loans Available
ATLANTA -- Federal economic injury disaster loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of all sizes in Ohio as a result of the freeze from Jan. 2 through April 17. Counties that qualify include Ashtabula, Geauga, Mahoning, Portage and Trumbull.
"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 eligible entities affected by the same disaster," said Frank Skaggs, director of the SBA Field Operations Center East here, in a prepared statement.
The loans can be up to $2 million with interest rates of 2.625% for private nonprofit organizations of all sizes and 4% for small businesses, with terms up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources. The SBA sets the sizes of the loans and terms based on the applicant's financial condition. 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. The loans are not intended to replace lost sales or profits.
Under this declaration, the SBA Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of the freeze. Except for aquaculture enterprises, the SBA cannot provide disaster loans to agricultural producers, farmers or ranchers.
Applicants may apply online using the Electronic Loan Application via the SBA website.
Disaster loan information and application forms can also be obtained by calling the SBA Customer Service Center at 800 659 2955.
Completed loan applications must be returned to SBA no later than May 18, 2015.
Published by The Business Journal, Youngstown, Ohio.
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