SBA makes drought-related loans available in R.I.

THE U.S. Small Business Administration is making federal economic injury disaster loans available to small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations in Kent, Providence and Washington counties as a result of drought that began last summer.
THE U.S. Small Business Administration is making federal economic injury disaster loans available to small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations in Kent, Providence and Washington counties as a result of drought that began last summer.

PROVIDENCE – The U.S. Small Business Administration said that federal economic injury disaster loans are available to small businesses, small agricultural cooperatives, small aquaculture businesses and most private nonprofit organizations of all sizes in Kent, Providence and Washington counties as a result of the drought that began on July 1.
The counties are eligible because they are contiguous to one or more primary counties in Connecticut, the SBA said.
“The Small Business Administration recognizes that disasters do not usually stop at county or state lines. For that reason, counties adjacent to primary counties named in the declaration are included,” Frank Skaggs, director of SBA’s Field Operations Center East in Atlanta, said in a statement.
Under this 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 the drought.
Except for aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers or ranchers. Nurseries are eligible to apply for economic-injury disaster loans for losses caused by drought conditions, however.
Loans can be up to $2 million with interest rates of 2.625 percent for private nonprofit organizations of all sizes and 4 percent for small businesses, with terms up to 30 years.
The SBA determines eligibility based on the size of applicant, type of activity and financial resources. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
Loans are not intended to replace lost sales or profits. They can be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred.
Applicants may apply online at https://disasterloan.sba.gov/ela/.
For information, call the SBA at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an e-mail to disastercustomerservice@sba.gov. Loan applications can be downloaded at www.sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Completed loan applications must be returned to SBA no later than Aug. 10.

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