Small Business Administration disaster-assistance available

The disaster loans offset economic losses because of reduced revenues caused by adverse weather conditions, said Alfred E. Judd, director of SBA’s Disaster Field Operations – West.

Burnet County is one of 31 counties eligible for the funding. Small non-farm businesses that have experienced economic losses due to drought beginning May 1, 2008, and continuing have until June 29, 2009, to apply, federal officials said.

Small businesses and most private, nonprofit organizations of any size may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses, which could have been met had the disaster not occurred. 

“Eligibility for these loans is based on the financial impact of the disaster only and not on any actual property damage,” Judd said. “These loans have an interest rate of 4 percent, a maximum term of 30 years, and are restricted to small businesses without the financial ability to offset the adverse impact without hardship.”

By law, SBA makes the loans available when the U.S. secretary of agriculture designates an agricultural disaster. Secretary Ed Schafer declared these disasters at the request of Gov. Rick Perry.

Businesses primarily involved in farming or ranching are not eligible for the SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency about the USDA assistance made available by the secretary’s declaration. 

However, in drought disasters, nurseries are eligible for SBA disaster assistance, officials said.

Information and application forms are available from SBA’s Customer Service Center at (800) 659-2955, by e-mail at disastercustomerservice@sba.gov, or by visiting www.sba.gov/services/disasterassistance. 

Hearing-impaired individuals may call (800) 877-8339. SBA’s Electronic Loan Application is accessible via SBA’s secure Web site at http://disasterloan.sba.gov.ela.