SBA: Economic Injury Disaster Loan available after recent disaster declaration

(The following is a press release from the Small Business Administration.)

The U.S. Small Business Administration announced today that Economic Injury Disaster Loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and private nonprofit organizations located in Mississippi as a result of rainfall and flooding from April 1 through June 30, 2018. The loans are available in the following counties: Adams, Alcorn, Benton, Calhoun, Carroll, Chickasaw, Clay, Coahoma, DeSoto, Forrest, Franklin, George, Greene, Grenada, Hancock, Harrison, Holmes, Humphreys, Issaquena, Itawamba, Jackson, Jefferson, Lafayette, Lee, Leflore, Lowndes, Marshall, Monroe, Noxubee, Oktibbeha, Panola, Pearl River, Perry, Pontotoc, Prentiss, Quitman, Sharkey, Stone, Sunflower, Tallahatchie, Tate, Tippah, Tishomingo, Tunica, Union, Warren, Washington, Wayne, Webster, Wilkinson, Yalobusha and Yazoo in Mississippi; Chicot, Crittenden, Lee and Phillips in Arkansas; and Concordia, East Carroll and Tensas parishes in Louisiana. “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 Kem Fleming, director of SBA’s Field Operations Center East. 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 and ranchers. The loan amount can be up to $2 million with interest rates of 2.5 percent for private nonprofit organizations of all sizes and 3.58 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.