The U.S. Small Business Administration reminds small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and private nonprofit organizations in Connecticut of the July 5, 2016 deadline to apply for Economic Injury Disaster Loans (EIDLs) as a result of the drought that began on April 1, 2015. “Businesses that suffered economic losses as a result of the disaster and want to apply for low-interest loans from the SBA are urged to do so before the deadline,” said Frank Skaggs, director of SBA Field Operations Center East in Atlanta.
The disaster declaration includes Fairfield, Hartford, Litchfield, Middlesex, New Haven, New London, Tolland and Windham counties in Connecticut.
Under this 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 this disaster. With the exception of aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers and ranchers. However, nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.
The loans are for working capital and can be up to $2 million with interest rates of 4% for eligible small businesses and 2.625% for nonprofit organizations, and 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 using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloan.sba.gov/ela.
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) or by sending an email to firstname.lastname@example.org. Loan applications may be downloaded from www.sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Submit completed loan applications to SBA no later than July 5, 2016.