WILMINGTON – With the next hurricane season upon us, U.S. Sen. Tom Carper (D-Del.) reminds Sussex, Kent and New Castle County small businesses, agriculture cooperatives and those involved in aquaculture that the filing deadline for federal economic injury disaster loans as a result of the effects of drought and excessive heat and damage from Hurricane Irene and Tropical Storm Lee is July 16, 2012.
"I encourage businesses that qualify to take advantage of this loan opportunity through the Small Business Administration," said Sen. Carper. "This program can help businesses hurt by these acts of nature on their path to financial recovery."
The Economic Injury Disaster Loan program through the Small Business Administration is available to farm and non-farm related entities that suffered financial losses as a result of Hurricane Irene and Tropical Storm Lee that occurred from April 1, 2011 through Oct. 31, 2011. With the exception of aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, or ranchers, 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 a 4 percent interest rate for eligible small businesses and 3 percent for non-profit organizations 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. The 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 deaf and hard-of-hearing) or by sending an e-mail to firstname.lastname@example.org. Loan applications can be downloaded from the SBA's website at www.sba.gov. 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 also apply for loans electronically from SBA's website at https://disasterloan.sba.gov/ela/.