After March frost, SBA extends loans

The U.S. Small Business Administration is making “economic injury” disaster loans available to small businesses and nonprofits in Fairfield County and Litchfield County, as a result of frosts beginning March 1 that had a major impact on New York farms.

After a warm winter, some New York farms saw crops blossom early, only to be destroyed by a spate of cold weather in early March. According to U.S. Sen. Kirstin Gillebrand, more than 3 million acres of farmland experienced a 30 percent loss or greater, with many farms losing their entire crop, some of them still struggling to recover from last year”™s Tropical Storm Irene.

“Disasters do not usually stop at county or state lines,” said Frank Skaggs, director of SBA”™s field operations center in Atlanta, in a written statement. “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.”

Loans of up to $2 million at 4 percent interest are available for small businesses, and 3 percent interest for nonprofits. Proceeds can be used to pay off existing fixed debt, meet payroll, pay vendors, and other handle bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.

Completed loan applications must be returned to SBA by February 5, 2013. Applications can be downloaded at www.sba.gov.