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Deadline nears to apply for SBA drought-related economic disaster loans
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The U.S. Small Business Administration is reminding disaster victims that Aug. 12 is the filing deadline for federal economic injury disaster loans available in Georgia. The SBA declared a disaster because of damages and losses to crops caused by the drought that began on Jan. 1, 2008. The SBA’s disaster declaration covers all counties in the state of Georgia except McIntosh County.

“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 small businesses and most private, non-profit organizations affected by the same disaster”, said Frank Skaggs, director of SBA Field Operations Center East.

Under the declaration, the SBA’s Economic Injury Disaster Loan program is available to farm related and non-farm related small business concerns, small agricultural cooperatives and most private, non-profit organizations of all sizes that suffered financial losses as a direct result of this disaster.

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.

Eligible small businesses and non-profit organizations may qualify for loans up to $2 million. These loans are available at a 4 percent interest rate with loan 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. Under this disaster declaration, the SBA cannot provide loans to agricultural producers.

Disaster victims should contact the SBA’s Customer Service Center by calling 1-800-659-2955 (1-800-877-8339 for the hearing impaired) Monday through Friday from 8 a.m.-9 p.m. EDT, or by sending an email to disastercustomerservice@sba.gov.  Loan applications can be downloaded from the SBA’s Web site 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, Texas 76155.