POINT PLEASANT — Losses from the June flood have resulted in the U.S. Small Business Administration offering low-interest loans to those suffering economic injury, with Mason County included in the eligibility area.
This week, Adrianne LaNeave with the SBA Office of Disaster Assistance, met with Mason County Economic Development Authority Director John Musgrave about these loans available for those small businesses that may still suffer from an economic loss as a result of the June flooding.
Economic Injury Disaster Loans (EIDL) are working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
When specifically talking about EIDL, the law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. EIDL assistance is available only to entities and their owners who cannot provide for their own recovery from non-government sources, as determined by the U.S. Small Business Administration.
LaNeave said the SBA has approved 483 SBA disaster loans totaling $31,729,000 across the State of West Virginia. Most of these approvals are for homeowners who are repairing or rebuilding their homes. She added, while this number will continue to rise until well past the deadline it is important that anyone who has been referred to the SBA from FEMA should complete and return their applications as soon as possible. The final day for SBA Physical Disaster Loan Applications for Individuals and Businesses is Aug. 24, 2016 and March 27, 2017 for small businesses suffering from an economic injury.
LaNeave said the SBA Office of Disaster Assistance is here to help those businesses affected by the June flooding with those low interest loans. Businesses and private non-profit organizations of any size may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
The Interest rates are as low as 2.625 percent for non-profit organizations and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
For more information about SBA loans, survivors can call SBA’s Disaster Assistance Customer Service Center at 800-659-2955, email [email protected], or visit http://www.sba.gov/disaster or by visiting a Disaster Recovery Center near them.
Information for this article provided by the SBA.