Disaster Loans Available To Small

Agriculture-Dependent Businesses

WATERBURY — The US Small Business Administration (SBA) announced this week that federal disaster loans are available to small, nonfarm, agriculture-dependent businesses located in Fairfield and Litchfield Counties.

“These counties are eligible because they are contiguous to one or more primary counties in New York. SBA recognizes that disasters do not usually stop at the county or state lines. For that reason, counties adjacent to primary counties named in the declaration are included,” according to Frank Skaggs, director of SBA Field Operations Center East.

“SBA’s disaster declaration was issued as a result of a similar action taken by the Secretary of Agriculture to help farmers recover from damages and losses to crops caused by excessive rain, flooding, flash flooding, and high winds that occurred from June 24, 2006 onward,” Mr Skaggs said.

Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small, nonfarm, agriculture-dependent businesses and small agricultural cooperatives that suffered economic injury as a direct result of the weather’s effect on agricultural producers. A business that sells goods/services to agricultural producers may be unable to pay bills and/or meet expenses because of the reduced purchasing power of farmers and ranchers.

Examples of eligible businesses are, but not limited to, farm implement dealers, seed and feed stores, and spraying and irrigation businesses. Farmers and ranchers are not eligible to apply to SBA.

Eligible small businesses may qualify for loans up to $1.5 million. These loans are available at a 4 percent interest rate with loan terms up to 30 years. SBA determines eligibility for the program based on the size and type of business and its financial resources.

Loan amounts and terms are set by SBA and are based upon each applicant’s financial condition.

Under this disaster declaration, SBA cannot provide loans to agricultural producers, and cannot provide loans to nonagricultural dependent businesses.

“SBA can help these small businesses overcome their economic injuries by offering these working capital loans, but the help cannot start until they apply,” Mr Skaggs added.

Interested business owners should contact SBA’s Customer Service Center by calling 800-659-2955 (800-877-8339 for the hearing impaired), Monday through Saturday from 8 am until 9 pm EDT. Business loan applications can also be downloaded from the SBA’s website at www.sba.gov/disaster.

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 April 23, 2007.