SBA Loans Follow State Agriculture Disaster Declaration

ATLANTA — The US Small Business Administration will extend federal economic injury disaster loans to small businesses, small agricultural cooperatives and most private, nonprofit organizations of all sizes in the entire State of Connecticut as a result of extreme storms with abnormally high rainfall, high winds, hail, lightning and flooding that occurred that occurred July 27 through August 12, 2008.

“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 assist small businesses and most private, nonprofit organizations affected by the same disaster,” said Frank Skaggs, director of SBA’s Field Operations Center East.

Under this declaration, the SBA’s Economic Injury Disaster Loan program is available to farm-related and nonfarm-related small business concerns, small agricultural cooperatives, and most private, nonprofit organizations of all sizes that suffered financial losses as a direct result of this disaster. Farmers and ranchers are not eligible to apply to SBA.

Eligible small businesses and nonprofit organizations may qualify for loans up to $2 million. These loans are available at a four percent interest rate with loan 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. Under this disaster declaration, the SBA cannot provide loans to agricultural producers.

Disaster victims should contact the SBA’s Customer Service Center by calling 800-659-2955 Monday through Friday from 8 am to 9 pm, or Saturday and Sunday 9 am to 9 pm EST, or by emailing disastercustomerservice@sba.gov.

Loan applications can be downloaded from www.sba.gov/services/disasterassistance.

Completed applications should be mailed to: US 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 July 13, 2009.