March 1 is Ohio deadline to apply for SBA working capital loansWritten by Staff Reports | | email@example.com
March 1 is the filing deadline for small businesses in Ohio to apply for federal economic injury disaster loans available in Fulton, Lucas and Williams counties as a result of the blizzards, excessive snow, heat, rain, high winds, hail, freeze, frost, tornadoes, flooding and lightning that occurred from Jan. 1 through May 11, 2012.
The loans are available from the U.S. Small Business Administration for small businesses, small agricultural cooperatives and businesses engaged in aquaculture and most private nonprofit organizations of all sizes. The loan amount can be up to $2 million with a 4 percent interest rate for eligible small businesses and 3 percent for nonprofit organizations with 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. The loans are not intended to replace lost sales or profits.
The SBA determines eligibility 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.
“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,” Frank Skaggs, director of SBA’s Field Operations Center East in Atlanta, stated in a press release about the program.
Under that 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 aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, or ranchers.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloan.sba.gov/ela or calling by its Customer Service Center at (800) 659-2955.