SBA working capital loan deadline approaching for Virginia businesses affected by drought
The Small Business Administration is reminding small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations in Virginia that Aug. 2 is the filing deadline for federal economic injury disaster loans due to a drought from June 1 through Aug. 1, 2020.
The loans are available in the independent cities of Franklin, Fredericksburg, Newport News, Petersburg, Richmond and Suffolk; and in the counties of Amelia, Brunswick, Caroline, Chesterfield, Culpeper, Dinwiddie, Essex, Fauquier, Gloucester, Goochland, Greensville, Hanover, Henrico, Isle of Wight, King and Queen, King George, King William, Lancaster, Louisa, Middlesex, New Kent, Nottoway, Orange, Prince George, Prince William, Southampton, Spotsylvania, Stafford, Surry, Sussex, and Westmoreland in Virginia.
Under this declaration, 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 this disaster. Apart from aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, and ranchers.
Nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions. The loan amount can be up to $2 million with interest rates of 3 percent for small businesses and 2.75 percent for private nonprofit organizations, 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. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at Disasterloan.sba.gov and should apply under SBA declaration # 16801, not for the COVID-19 incident. Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to DisasterCustomerService@sba.gov.
Loan applications can be downloaded from sba.gov/disaster.
Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. Submit completed loan applications to SBA no later than Aug. 2.