SBA Disaster Loan Deadline is May 1

Small Business Owners Still Have Time to Apply

RICHMOND, Va., April 4, 2008 /PRNewswire-USNewswire/ -- The U.S. Small Business Administration is reminding businesses that May 1 is the filing deadline for federal economic injury disaster loans that are available to small businesses located in Virginia as a result of drought and high temperatures that occurred January 1, 2007 and continuing.

Small businesses in the following counties are eligible to apply: Bedford, Bland, King George, Lancaster, Loudoun and Orange and the contiguous counties of Albemarle, Amherst, Botetourt, Campbell, Caroline, Clarke, Culpeper, Essex, Fairfax, Fauquier, Franklin, Giles, Greene, Louisa, Madison, Northumberland, Pittsylvania, Prince William, Pulaski, Richmond, Roanoke, Rockbridge, Smyth, Spotsylvania, Stafford, Tazewell, Westmoreland and Wythe and the Independent Cities of Bedford and Lynchburg in the Commonwealth of Virginia.

"When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, SBA issues a declaration to assist small businesses affected by the same disaster," said Frank Skaggs, Director of SBA Field Operations Center East.

Under this declaration, SBA's Economic Injury Disaster Loan (EIDL) program is available to farm-related and nonfarm-related small business concerns and small agricultural cooperatives that suffered financial losses as a direct result of this disaster. Farmers and ranchers are not eligible to apply to SBA, but nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.

Eligible small businesses may qualify for loans up to $1.5 million. These loans are available at a 4 percent interest rate with loan terms up to 30 years. SBA determines eligibility for the program based on the size and type of business and its financial resources. Loan amounts and terms are set by SBA and are based upon each applicant's financial condition. Under this disaster declaration, SBA cannot provide loans to agricultural producers.

Interested business owners should contact SBA's Customer Service Center by calling 1-800-659-2955 (1-800-877-8339 for the hearing-impaired) Monday through Friday from 8 a.m. to 8 p.m. EDT. Business loan applications can also be downloaded from the SBA's website at www.sba.gov. 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 May 1, 2008.

For more information about the SBA's Disaster Loan Programs, visit our website at www.sba.gov.

First Call Analyst:
FCMN Contact:

Source: U.S. Small Business Administration

CONTACT: Michael Lampton of SBA, +1-404-331-0333

Web Site: http://www.sba.gov/

2008-04-04 17:28:37 0328694 PRNEWSWIRE