Illinois News

SBA loans available to small businesses affected by recent disasters

By Herald-Whig
Posted: Aug. 17, 2019 4:20 pm

QUINCY -- The U.S. Small Business Administration has announced that Economic Injury Disaster Loans are now available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and private nonprofit organizations in the area.

The loans are available to businesses affected by excessive moisture, flooding and flash flooding since Sept. 1, 2018.

The SBA said the loans are available to the entire state of Illinois; to Cape Girardeau, Clark, Jefferson, Lewis, Lincoln, Marion, Mississippi, Perry, Pike, Ralls, St. Charles, St. Louis, St. Genevieve and Scott counties and to the city of St. Louis in Missouri; and to Clinton, Des Moines, Dubuque, Jackson, Lee, Louisa, Muscatine and Scott counties in Iowa.

"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," explained Kem Fleming, director of the SBA's field operations center.

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 disaster. With the exception of aquaculture enterprises, the SBA cannot provide disaster loans to agricultural producers, farmers and ranchers.

The loan amount can be up to $2 million with interest rates of 3.675 percent for small businesses and 2.5 percent for private nonprofit organizations of all sizes, with terms up to 30 years.

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.

Loan applications can be downloaded from Disasterloan.sba.gov.

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