SBA makes disaster loans eligible to Hamilton and Marion Counties

CHATTANOOGA, Tenn. (WDEF) – The U.S. Small Business Administration (SBA) announced Tuesday that federal Economic Injury Disaster Loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and private nonprofit organizations in Hamilton and Marion counties.

They are the result of the drought that began on June 28, 2016.

The director of the SBA’s Field Operations Center said Hamilton and Marion counties are eligible because they are contiguous to one or more primary counties in Georgia, and the SBA recognizes that disasters do not usually stop at county or state lines.

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.

These 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 here.