SBA loans available in Indiana due to drought

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August 27, 2012

SBA loans available in Indiana due to drought

NEWS AND TRIBUNE newsroom@newsandtribune.com The News and Tribune Mon Aug 27, 2012, 09:46 PM EDT

> SOUTHERN INDIANA — A disaster declaration in Kentucky has extended across state lines to allow several Indiana counties to receive assistance.

The U.S. Small Business Administration announced that federal economic injury disaster loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations of all sizes in Clark, Dearborn, Floyd, Harrison, Jefferson, Ohio and Switzerland counties in Indiana as a result of the drought that began April 1, according to a press release.

“These counties are eligible because they are contiguous to one or more primary counties in Kentucky,” said Frank Skaggs, director of SBA Field Operations Center East, in the release. “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.”

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, according to the release. 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 interest rates of 3 percent for non-profit organizations of all sizes and 4 percent for small businesses, 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 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 1-800-659-2955 [1-800-877-8339] 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.

Completed loan applications must be returned to SBA no later than April 15.

For more information about the SBA’s Disaster Loan Programs visit its website at www.sba.gov.