ATLANTA, Oct. 24, 2012 /PRNewswire-USNewswire/ -- The U.S. Small Business Administration announces today that federal economic injury disaster loans are available to small businesses, small agricultural cooperatives and most private non-profit organizations of all sizes located in Caswell and Rockingham counties in North Carolina as a result of drought, excessive heat, and high winds beginning Jan. 1, 2012.
"These counties are eligible because they are contiguous to one or more primary counties in Virginia. The Small Business Administration recognizes that disasters do not usually stop at county or state lines. For that reason, counties adjacent to primary counties named in the declaration are included," according to Frank Skaggs, director of SBA's Field Operations Center East.
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 Skaggs.
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. However, 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 and 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. These loans are not intended to replace lost sales or profits. Those affected by the disaster may apply for disaster loans from SBA's secure Web site at https://disasterloan.sba.gov/ela/.
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 email to firstname.lastname@example.org. 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, TX 76155.
Completed loan applications must be returned to SBA no later than June 17, 2013.
For more information about the SBA's Disaster Loan Programs, visit our Web site at www.sba.gov
Contact: Michael Lampton
Release Number: 13-036, VA 13354
SOURCE U.S. Small Business Administration