Fed loans offered to businesses hit by drought
Beacon-News Staff August 7, 2012 12:04PM
Updated: November 30, 2012 10:59AM
The Small Business Administration is offering loans to businesses other than farms in several area counties that suffered financial losses because of this year’s drought.
The SBA Economic Injury Disaster Loans are available to businesses in Kendall, DeKalb, Bureau, Henry, Montgomery and Whiteside counties, U.S. Rep. Randy Hultgren, R-14th District, said Tuesday.
Hultgren announced Wednesday that Lake and McHenry counties have received primary disaster designations from the U.S. Department of Agriculture (USDA). Kane county is therefore classified as ‘contiguous’ by the USDA and is eligible for disaster assistance from the Farm Service Agency.
One week ago, Lee and Whiteside counties received primary disaster designations, resulting in contiguous designations for Bureau, DeKalb, Henry and Kendall.
The SBA said that when a federal disaster declaration is made to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to other businesses affected by the same disaster.
According to the SBA, the loans are only for farm-related or nonfarm-related entities such as small businesses, small agricultural cooperatives, and private non-profit organizations.
SBA loan amounts will vary based on the size of the applicant, type of activity and financial resources. They may be used to pay fixed debts, payroll, accounts payable, and other bills that went unpaid because of the disaster.
“The effects of the 2012 drought have been far-reaching and devastating for businesses other than farms,” Hultgren said. “While these loans can’t make up for lost profit, they can help a business or nonprofit maintain stable operations, saving many jobs in the process.”
Applicants may apply by mail or online using the Electronic Loan Application (ELA) via SBA’s secure website: https://disasterloan.sba.gov/ela. Applications are due by April 1, 2013.
Producers, farmers and ranchers are not eligible for the SBA loans, but may be eligible for assistance through the U.S. Department of Agriculture. Visit www.fsa.usda.gov for information.