Area counties eligible for SBA disaster loans

Published 10:25 pm Thursday, March 30, 2006

The U.S. Small Business Administration is offering federal disaster loans up to $1.5 million to eligible small, non-farm, agriculture-dependent businesses in Catoosa, Fannin, Murray and Whitfield counties.

“These counties are eligible because they are contiguous to one or more primary counties in the state of Tennessee,” said Frank Skaggs, director of SBA field operations center east.

“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.”

Skaggs said SBA’s disaster declaration was issued as a result of similar action taken by the Secretary of Agriculture to help farmers recover from damages and losses to crops caused by hurricane-related winds and additional storm damage that occured from Aug. 29, 2005, to Sept. 30, 2005.

SBA’s Economic Injury Disaster Loan program is available to businesses that suffered economic damage as a direct result of the weather’s effect on agricultural producers. A business that sells goods or 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 include farm implement dealers, seed and feed stores, and spraying and irrigation businesses. Farmers and ranchers are not eligible.

Loans are available at a 4 percent interest rate with loan terms up to 30 years. SBA determines eligibility based on the size and type of business and its financial resources. Loan amounts and terms are set by the SBA and are based upon each applicant’s financial condition.

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

Interested business owners should contact SBA’s National Customer Service Center by calling 800-659-2955 Monday through Saturday from 8 a.m. until 9 p.m. Business loan applications can be downloaded from the SBA’s Web site at www.sba.gov/disaster.

Completed loan applications must be returned to SBA by Oct. 13, 2006.