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SBA Economic Injury Disaster Loans Available in Alabama Following Secretary of Agriculture Disaster Declaration

Dan Alabama, Economy

sbaThe U.S. Small Business Administration (SBA) announced that federal Economic Injury Disaster Loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations located in Alabama as a result of the drought that began on Jan. 30, 2018.

The SBA’s disaster declaration includes the following counties: Bibb, Blount, Calhoun, Chilton, Coosa, Cullman, Etowah, Fayette, Greene, Hale, Jefferson, Lamar, Marion, Perry, Pickens, Saint Clair, Shelby, Sumter, Talladega, Tuscaloosa, Walker and Winston in Alabama.

“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.

sbaUnder 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 interest rates of 2.50 percent for private nonprofit organizations and 3.580 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 (ELA) via SBA’s secure website at DisasterLoan.sba.gov.

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 also be downloaded at 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 Nov. 15, 2018.