SBA working capital loans available in Virginia
Published 7:30 am Wednesday, March 9, 2022
The U.S. Small Business Administration announced today that Economic Injury Disaster Loans (EIDLs) are available in Virginia to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations affected by drought from May 1 through Oct. 15, 2021.
The declaration covers the primary counties of Buckingham, Fauquier, Loudoun, Prince William, Smyth and Washington in Virginia; and the contiguous counties of Albemarle, Appomattox, Bland, Bristol City, Clarke, Culpeper, Cumberland, Fairfax, Fluvanna, Grayson, Manassas City, Manassas Park City, Nelson, Prince Edward, Rappahannock, Russell, Scott, Stafford, Tazewell, Warren and Wythe in Virginia; Charles, Frederick, Montgomery and Washington in Maryland; Johnson and Sullivan in Tennessee; and Jefferson in West Virginia.
“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to eligible entities, affected by the same disaster,” said Kem Fleming, director of SBA’s Field Operations Center East.
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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 2.88% for small businesses and 2% for private nonprofit organizations, with terms up to 30 years. 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 the SBA’s secure website at DisasterLoanAssistance.sba.gov/ela/s/ and should apply under SBA declaration # 17362, 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; for people who are deaf, hard of hearing, or have a speech disability, dial 7-1-1 to access telecommunications relay services; or by sending an email to DisasterCustomerService@sba.gov. Loan applications can be downloaded from the SBA’s website at 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 the SBA no later than Oct. 17.