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SBA disaster loans available in OC due to summer drought

SBA disaster loans available in OC due to summer drought

Posted: Wednesday, December 22, 2010 9:03 pm

ATLANTA — The U.S. Small Business Administration announced last week that federal economic injury disaster loans are available to small businesses, small agricultural cooperatives and most private non-profit organizations of all sizes located in Tennessee because of drought and excessive heat that began June 1.
The SBA’s disaster declaration includes the following counties: Bedford, Bradley, Carter, Claiborne, Cocke, Dyer, Fayette, Hamilton, Henry, Hickman, Jefferson, Lauderdale, Lewis, Marion, Marshall, Moore, Perry, Polk, Rhea, Rutherford, Sequatchie, Sevier, Sullivan, Tipton, Unicoi, Union, Washington and Williamson; and contiguous counties of Anderson, Benton, Bledsoe, Blount, Campbell, Cannon, Carroll, Cheatham, Coffee, Crockett, Cumberland, Davidson, Decatur, Dickson, Franklin, Gibson, Giles, Grainger, Greene, Grundy, Hamblen, Hancock, Hardeman, Hawkins, Haywood, Humphreys, Johnson, Knox, Lake, Lawrence, Lincoln, Maury, McMinn, Meigs, Monroe, Obion, Roane, Shelby, Stewart, Van Buren, Warren, Wayne, Weakley and Wilson in Tennessee.   
“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 SBA’s Field Operations Center East.
Under this declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster. With the exception of aquacultural enterprises, agricultural producers, farmers and ranchers are not eligible to apply to SBA, but nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.
The loan amount can be up to $2 million with interest rates of 3 percent for private non-profit organizations of all sizes and 4 percent 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. Loan amounts and terms are set by the SBA and are based on each 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. These loans are not intended to replace lost sales or profits.
Disaster loan information and application forms may be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the hearing-impaired) Monday through Friday from 7 a.m. to 5 p.m. or by sending an e-mail to disastercustomerservice@sba.gov. Loan applications can be downloaded from the SBA’s website at 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. Those affected by the disaster may apply for disaster loans from SBA’s secure Web site at https://disasterloan.sba.gov/ela/.
Completed loan applications must be returned to SBA no later than Aug. 8.

Published in The Messenger 12.22.10

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