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Small Business Administration announces disaster loans available
ATLANTA, Ga. - The U.S. Small Business Administration has announced that federal disaster loans are available to small businesses in Virginia as a result of drought that occurred May 15 and continuing.
Small businesses in the following counties are eligible to apply for these loans: Alleghany, Augusta, Bath, Bland, Clarke, Craig, Frederick, Giles, Highland, Loudoun, Rockingham, Shenandoah, and Tazewell.
"These counties are eligible because they are contiguous to one or more primary counties in the state of West Virginia. The Small Business Administration recognizes that disasters do not usually stop at county or state lines. For that reason, counties adjacent to primary counties named in the declaration are included," said Frank Skaggs, director of SBA field operations center east.
"When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, SBA issues a declaration to assist small businesses affected by the same disaster," said Skaggs.
Under this declaration, SBA's economic injury disaster loan program is available to farm-related and nonfarm-related small busi- ness concerns and small agricultural cooperatives that suffered financial losses as a direct result of this disaster.
Farmers and ranchers are not eligible to apply to the SBA but nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.
Eligible small businesses may qualify for loans up to $1.5 million. These loans are available at a 4 percent interest rate with terms up to 30 years.
SBA determines eligibility for the program based on the size and type of business and its financial resources. Loan amounts and terms are set by the SBA and are based upon each applicant's financial condition. Under this disaster declaration, the SBA cannot provide loans to agricultural producers.
Interested business owners should contact SBA's Customer Service Center by calling 1-800- 659-2955 (1-800-877-8339 for the hearing-impaired) Monday through Friday from 8 a.m. to 9 p.m. Loan applications can also 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, Texas 76155.
Completed loan applications must be returned to SBA no later than July 7, 2008.
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