Small businesses and non-profit organizations may be eligible to receive low interest loans as a result of a disaster declaration that included Stearns and Todd county. The disaster declaration was the outcome of drought conditions that occurred from Sept. 1, 2013 through Nov. 15, 2013.
The U.S. Small Business Administration (SBA) announced that federal economic injury disaster loans were available to small businesses after the Secretary of Agriculture issued a disaster declaration to help farmers recover from damages and losses to crops from this same drought event.
The SBA loan amount can be up to $2 million with interest rates of 2.875 percent for private 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 business, 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) on SBA’s website 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 800-659-2955 or by sending an email to [email protected]
Loan applications can also be downloaded from www.sba.gov/disaster and when completed mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.