Published March 19, 2012
The U.S. Small Business Administration reminded small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations in South Carolina that April 16 is the filing deadline for federal economic injury disaster loans.
The working capital loans are available in all S.C. counties, except Cherokee and Spartanburg counties.
The loans are available in response to the drought and excessive heat that began on April 1, 2011.
"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.
The loan amount can be up to $2 million with a 4% interest rate for eligible small businesses and 3% for nonprofit 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 or by sending an email to email@example.com. Loan applications can also be downloaded from 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.
Completed loan applications must be returned to SBA no later than April 16.