The US Small Business Administration reminds small businesses, small farmer co-ops, small businesses active in aquaculture, and private non-profit organizations in Oxford County that July 26 is the deadline for filing federal loans in economic disaster due to the drought that began on May 26, 2020.
Under this statement, the SBA’s Economic Disaster Lending Program is available to eligible agricultural and non-agricultural entities that have suffered financial losses as a direct result of this disaster. Apart from aquaculture businesses, the SBA cannot provide disaster loans to agricultural producers, farmers and ranchers. Nurseries are eligible to apply for economic disaster loans for losses caused by drought.
The loans are for working capital and can reach $ 2 million with interest rates of 3% for small businesses and 2.75% for private non-profit organizations, with terms of up to 30 years. The SBA determines eligibility based on the applicant’s size, type of activity, and financial resources. The amounts and terms of the loan are set by the SBA and are based on the financial status of each applicant. These working capital loans can be used to pay off fixed debts, payroll, accounts payable and other bills that might have been paid had the disaster not occurred. Loans are not meant to replace lost sales or profits.
Applicants can apply online using the electronic loan application through the SBA’s secure website at DisasterLoan.sba.gov and must apply under SBA statement # 16792. Information and application forms can also be obtained by calling the SBA Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard of hearing) or by sending an email to [email protected]
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