SBA Loans - Disaster Loans Now Available For Businesses And Non-Profits

The U.S. Small Business Administration have announced that federal economic injury disaster loans are accessible to small businesses, small agricultural cooperatives and most non-profit private groups within Tennessee. This is due to the extreme heat and resulting drought that commenced on June 1 of 2010.

“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 assist eligible entities affected by the same disaster,” said Frank Skaggs, director of SBA’s Field Operations Center East in Atlanta.

The SBA’s Economic Injury Disaster Loan scheme was created for qualified farm-related and non-related business entities that experienced major financial losses due to the extreme weather of the summer, 2010. Agricultural providers, farm owners, and ranchers are not eligible for this program, however, nurseries do fall under the umbrella of eligible businesses.

Particulars of the loan outline that up to $2 million can be borrowed by non-profit corporations with a 3 percent interest rate. The same applies to small busineesses but with a 4 percent interest rate paid back over 30 years. Loan eligibility is calculated based on the size of the borrower, existing financial resources, and type of work or business field. These loans can be used to pay off fixed debts, employee pay, business expenses and various other bills that normally would have been paid if the extreme weather had not happened.

All questions related to the disaster loan program and for application forms can be answered by calling the SBA’s Customer Service Center at 1-800-659-2955.