2012 PRESS RELEASES
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June 19, 2012
Application Deadline is July 16 for Small Business Administration Working Capital Loans Due to Weather Damage in Virginia in 2011
~ Loans available for agricultural coops, nurseries and aquaculture enterprises in Accomack, Arlington, Fairfax and Loudoun Counties ~
Contact: Elaine J. Lidholm, 804.786.7686
The Virginia Department of Agriculture and Consumers Services (VDACS) reminds small businesses, small agricultural cooperatives and small businesses engaged in aquaculture that July 16, 2012 is the filing deadline for federal economic injury disaster loans available in Accomack, Arlington, Fairfax and Loudoun counties in Virginia. The loans are available due to the combined effects of drought, excessive heat and damage resulting from Hurricane Irene and Tropical Storm Lee that occurred from April 1 through Oct. 31, 2011.
These counties are eligible because they are contiguous to one or more primary designated counties in Maryland. When the U.S. Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to eligible entities affected by the same disaster.
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 or ranchers, but 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 a four percent interest rate for eligible 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.
Disaster loan information and application forms may 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. Loan applications can be downloaded from the SBA’s website. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Those affected by the disaster may also apply for loans electronically from SBA’s website. Completed loan applications must be returned to SBA no later than July 16, 2012.