SBA Disaster Loans Available in Minnesota Following Secretary of Agriculture Disaster Declaration

ATLANTA, Dec. 2, 2011 /PRNewswire-USNewswire/ -- The U.S. Small Business Administration announces today that federal economic injury disaster loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations of all sizes in Minnesota as a result of combined effects of excessive rain, excessive heat, high winds, tornadoes and an early Fall frost that occurred April 1, 2011 through Sept. 15, 2011.

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These loans are available in the following counties: Carver, Chippewa, Kandiyohi, Lincoln, Lyon, McLeod, Meeker, Pipestone, Pope, Renville, Sibley, Stearns, Swift, Wright and Yellow Medicine in Minnesota, and Brookings, Deuel and Moody in South Dakota.

When the 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 assist eligible entities affected by the same disaster," said Skaggs.

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 aquacultural enterprises, farmers, ranchers and agricultural producers are not eligible to apply to SBA, 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 4 percent interest rate for small businesses, 3 percent for non-profit organizations and terms up to 30 years. 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. These loans are not intended to replace lost sales or profits. Eligibility for the program is 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. 

Disaster loan information and application forms may be obtained by calling the SBA's Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing), or by sending an email to [email protected] . Loan applications can also be downloaded from www.sba.gov. Completed applications should be returned to the Center or 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 disaster loans electronically from SBA's website at https://disasterloan.sba.gov/ela/.

Completed loan applications must be returned to SBA no later than July 18, 2012.

For more information about the SBA's Disaster Loan Program, visit our Web site at www.sba.gov/services/disasterassistance.

CONTACT: Michael Lampton, +1-404-331-0333

SOURCE U.S. Small Business Administration

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