Deadline Approaching in Alabama for SBA Working Capital Loans Due to June, 2016 Drought

Targeted News Service (Press Releases)

ATLANTA, March 15 -- The Small Business Administration's Office of Disaster Assistance issued the following news release:

The U.S. Small Business Administration is reminding small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations of all sizes that April 10 is the filing deadline for federal economic injury disaster loans available in Alabama as a result of drought beginning June 14, 2016. The SBA's disaster declaration includes the following counties: Bibb, Blount, Calhoun, Chambers, Clay, Cleburne, Colbert, Cullman, Etowah, Franklin, Jefferson, Lauderdale, Lawrence, Lee, Limestone, Morgan, Randolph, Shelby, St. Clair, Talladega, Tallapoosa, Tuscaloosa, Walker and Winston. "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 in Atlanta. 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 aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, or ranchers. 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 2.625 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. Applicants may apply online using the Electronic Loan Application (ELA) via SBA's secure website at https://disasterloan.sba.gov/ela. Disaster loan information and application forms may also 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 email to disastercustomerservice@sba.gov. 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.