Deadline approaches for businesses to apply for federal loans | News, Sports, Jobs

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The Maui News

Small businesses in Maui, Kalawao and Hawaii counties have until Dec. 8 to apply for a federal disaster loan for revenue losses caused by drought that started Feb. 8, the U.S. Small Business Administration reminded residents Tuesday.

Small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may apply for economic injury disaster loans of up to $2 million to help meet working capital needs caused by the drought.

The loans “may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact,” said Tanya Garfield, director of the SBA Disaster Field Operations Center-West.

“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster,” Garfield added. “Economic injury assistance is available regardless of whether the applicant suffered any property damage.”

The interest rate is 2.94 percent for businesses and 1.875 percent for private nonprofits with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.

Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency about the U.S. Department of Agriculture assistance made available by the Secretary of Agriculture’s declaration of agricultural disaster on April 8. However, nurseries are eligible for SBA disaster assistance in droughts.

For more information or to apply, visit disasterloanassistance.sba.gov/.

Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice @sba.gov for more information. For people who are deaf, hard of hearing or have a speech disability, dial 711 to access telecommunications relay services.

Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.




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