Drought SBA loans available to Bradley and Polk counties
CHATTANOOGA, Tenn. (WDEF) – The U.S. Small Business Administration or SBA announced federal Economic Injury Disaster Loans are available in Bradley and Polk counties in Tennessee.
Small businesses, small agricultural cooperatives and small businesses engaged in aquaculture and private nonprofit organizations in Bradley and Polk are eligible.
They are available as a result of the drought that began on May 31, 2016.
Under this declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible farm-related entities that suffered financial losses as a direct result of this disaster.
With the exception of aquaculture enterprises, SBA can not provide disaster loans to agricultural producers, farmers, or ranchers.
Nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.
The loan amount can be up to $2 million with interest rates of 2.625 percent for private nonprofit organizations 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 and are based on each applicant’s financial condition.
The working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.
The loans are not intended to replace lost sales or profits.
Applicants may apply online.
Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing.)
Completed loan applications must be returned to SBA no later than March 27, 2017.