The U.S. Small Business Administration (SBA) is making its Economic Injury Disaster Loans (EIDLs) available for small businesses, cooperatives and nonprofits engaged in agriculture and aquaculture impacted by the frost and freeze that occurred on May 14-25.
The EIDLs cover Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster and Westchester counties in New York and Fairfield and Litchfield in Connecticut. Apart from aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, and ranchers.
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 loan amount can be up to $2 million with interest rates of 4 % for small businesses and 2.375 % for private nonprofit organizations, with terms up to 30 years.
SBA disaster loan borrowers have up to one year from the date of the note to begin making payments. In addition, interest does not begin to accrue until 12 months from the date of the initial loan disbursement and accrues only on the amount disbursed. The loans are not intended to replace lost sales or profits.
“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 eligible entities, affected by the same disaster,” said Ed Fears, director of SBA”™s Field Operations Center East.
Applicants may apply online using the Electronic Loan Application via the SBA”™s secure website at DisasterLoanAssistance.sba.gov/ela/s/ and should apply under SBA declaration #18091.
