By Megan Miller, Editor
ATLANTA – The U.S. Small Business Administration (SBA) announced Friday that the Federal Economic Injury Disaster Loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations in Alabama as a result of the drought that began October 4.
The declaration includes Autauga, Bibb, Chilton, Coosa, Dallas, Elmore, Fayette, Greene, Hale, Jefferson, Perry, Pickens, Shelby, Tuscaloosa and Walker counties.
“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,” Frank Skaggs, director of SBA’s Field Operations Center in East Atlanta, said.
The program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of the drought. With the exception of aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers or rangers. Nurseries are eligible to apply for economic injury disaster loans for losses caused specifically by drought conditions.
Loans can be distributed for up to $2 million with interest rates of 2.625 percent for private nonprofit organizations and 4 percent for small businesses, with terms up to 30 years. Elibability is based on the size of the applicant, type of activity and financial resources. Loans will be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred. Loans are not intended to replace lost sales or profit.
Apply here.