Traverse City Record-Eagle

Archive: Saturday

February 11, 2012

Feds seek applications for disaster loans

SBA program aims to help businesses impacted by weather

FROM STAFF REPORTS ----

TRAVERSE CITY — Federal economic injury disaster loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of all sizes located in Michigan as a result of excessive rain, high winds, hail, freeze, frost, blizzard, tornadoes, flooding and lightning that began Feb. 1, 2011.

Local counties covered in the disaster designation from the U.S. Small Business Administration include Antrim, Benzie, Cheboygan, Crawford, Grand Traverse, Kalkaska, Leelanau, Manistee, Missaukee, Otsego and Wexford.

Under the declaration, the SBA's Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of adverse weather. With the exception of aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers or ranchers.

Loans can be up to $2 million with interest rates of 3 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 applicant, type of activity and its financial resources.

Loan amounts and terms are set by the SBA based on each applicant's financial condition.

The loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred, and are not intended to replace lost sales or profits.

Disaster loan information and application forms may be obtained by calling the SBA's Customer Service Center at 800-659-2955 or by sending an email to disastercustomerservice@sba.gov.

Loan applications can be downloaded from www.sba.gov.

Completed applications should be mailed to: U.S. 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 Sept. 27. More information about the SBA's Disaster Loan Program is available at www.sba.gov.

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