SBA economic injury disaster loans available

Monday, December 2, 2002

Businesses in Buena Vista County are eligible to apply for low interest Economic Injury Disaster loans from the United States Small Business Administration (SBA) that are are now available to help businesses meet normal operating expenses that cannot be met due to the effects of a disaster.

High winds, cold spring temperatures, grasshopper infestation, extreme heat, hail and drought conditions that have occurred since Sept. 1 of 2001 have caused many farmers and ranchers to experience reduced incomes, an action that may have caused adverse economic effects on businesses depending upon these producers.

Many producers experienced crop losses and were not able to purchase goods and services at normal levels. Businesses dependent upon these producers may have experienced decreased sales, reduced gross profit margins, increased accounts receivable or difficulty in moving inventories at normal levels. The new SBA loan can help these companies meet installments on long-term debt, accounty payable and overhead expenses that would have been met had the disaster not occurred. Refinancing of long-term debt, however, is not eligible under this program.

Farmers and ranchers are not eligible for this particular loan program, but may be eligible for disaster assistance through other Federal agencies. However, nurseries that are victims of drought disasters can apply.

Laons may be approved for up to $1.5 million for actual disaster-related needs of the business. Interest rates are four percent and terms may extend to 30 years depending upon the repayment eligibility of the individual applicant. To qualify, businesses must be "small" by SBA's size standard. Companies which can meet their financial needs through other sources are not eligible.

Businesses in the following Iowa counties are eligible to apply for the loan: Adair, Adams, Audubon, Buena Vista, Carroll, Cass, Cherokee, Clarke, Clay, Crawford, Decatur, Dickinson, Emmet, Fremont, Guthrie, Harrison, Humboldt, Ida, Kossuth, Lucas, Lyon, Mills, Monona, Montgomery, O'Brien, Osceola, Page, Palo Alto, Plymouth, Pocahontas, Pottawattamie, Ringgold, Shelby, Sioux, Taylor, Union and Wayne.

To obtain an application or receive additional information, call SBA at 1-800-366-6303 or TDD 817-267-4688 for the hearing impaired.