SBA Low-Interest Disaster Loans Are Now Available as a Result of the Power Outage in Queens1 August 2006
The U.S. Small Business Administration announced today that Queens County and contiguous counties of Kings, New York, Bronx, and Nassau in the State of New York have been declared a disaster area as a result of the power outage that occurred from July 17, 2006 and continuing.
"As a result of this declaration, low-interest loans are available to small businesses that sustained economic injury due to the power outage," said Frank Skaggs, Director of SBA Field Operations Center East. "If your business suffered substantial economic injury from this event you are eligible to apply for assistance."
To assist businesses, SBA is opening a temporary Loan Assistance Center in Commerce Bank, 31 - 04 Ditmars Boulevard, Astoria, New York 11105. The Center will open Tuesday, August 1 at 10 a.m. and will remain open Monday - Friday, 10 a.m. - 8 p.m., until further notice.
Eligible small businesses may qualify for loans up to $1.5 million. These loans are available at a 4 percent interest rate with loan terms up to 30 years. SBA determines eligibility for the program based on the size and type of business and its financial resources. Loan amounts and terms are set by SBA and are based upon each applicant's financial condition.
"SBA can help these small businesses overcome their economic injuries by offering these working capital loans, but the help cannot start until they submit an SBA Disaster Loan application to us," Skaggs added.
Applications and program information are also available by calling the SBA's Customer Service Center at 1-800-659-2955 (for the hearing impaired 1-800-877-8339); Monday through Saturday from 8 a.m. until 9 p.m. EDT. For further information on the qualifications for this loan, or to download the SBA Disaster Business Loan application, visit our website at: http://www.sba.gov/disaster. Completed applications should be returned to the Loan Assistance Center or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Ft. Worth, TX. 76155.
Completed loan applications must be returned to SBA no later than May 1, 2007.
For more information about the SBA's Disaster Loan Programs
visit our website at http://www.sba.gov/disaster
Editor's Note: Additional information on this disaster declaration is below:
U.S. SMALL BUSINESS ADMINISTRATION
FACT SHEET
ECONOMIC INJURY DISASTER LOANS
SBA DISASTER DECLARATION DUE TO THE GOVERNOR'S CERTIFICATION
OF ECONOMIC INJURY
STATE: New York #10554
INCIDENT AND DATE: Power Outage Precipitated by Extreme Heat and Rising
Temperatures that occurred July 17, 2006 and
continuing.
TYPE OF LOAN:
* Economic Injury Disaster Loans (called EIDLs) are working capital
loans to meet necessary financial obligations, which cannot be met
because of the disaster.
ELIGIBILITY LIMITATIONS:
* Only small businesses and small agricultural cooperatives are
eligible.
* The economic injury must have been the direct result of the disaster
designated.
* The applicant business must be located in the declared disaster area
or in a contiguous county.
* Loan assistance is available only to the extent the business and its
owners cannot meet necessary financial obligations due to the
disaster. This determination is made by SBA.
* Only applicants who do not have "Credit Available Elsewhere" are
eligible. That determination is made by SBA based on whether the
business and its owners cannot recover from the disaster injury with
their own resources or by borrowing from non-government sources.
* Farmers and ranchers are not eligible. Assistance for farmers and
ranchers is provided by the U.S. Department of Agriculture.
* Certain other businesses may not be eligible. These include
businesses engaged in the buying and selling of investment property.
CREDIT REQUIREMENTS:
* These are loans and applicants must show that they have repayment
ability. Loans in excess of $5,000 must be secured with collateral.
Generally, this will include a lien on the applicant's business and/or
personal real estate. However, loans will not be declined for lack of
a fixed amount of collateral.
INTEREST RATES:
* The interest rate for small businesses and small agricultural
cooperatives unable to obtain credit elsewhere is 4.000%.
LOAN AMOUNT:
* The total loan amount to any one business entity (including
affiliates) cannot exceed $1,500,000. Actual loan amounts are
determined by SBA based on the amount of disaster-caused economic
injury and the business' disaster-caused financial needs.
LOAN TERM:
* Loan terms not to exceed 30 years are available. Loan terms are
individually determined based upon what is reasonable in consideration
of the applicant's repayment ability.
FLOOD INSURANCE REQUIREMENTS:
* Applicants with existing SBA loans which require them to maintain
flood insurance are not eligible if they have not maintained their
flood insurance.
* Generally, if collateral securing the loan is located in a special
flood hazard area, the applicant may be required to purchase and
maintain flood insurance as a condition of any loan.
LOAN APPLICATION FILING DEADLINE:
* Applications for this declared disaster must be filed by: May 1, 2007
For additional information, contact:
SBA Disaster Assistance Customer Service Center
1-800-659-2955
http://www.sba.gov/disaster
Monday - Saturday; 8:00 A.M. - 9:00 P.M. (Eastern Time)
Source: prnewswire
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