Thompson: Small Business Administration's Disaster Loan Deadline is Approaching

Press Release

Today, Congressman Glenn "GT' Thompson (PA-05) announced that the United States Small Business Administration's (SBA) deadline to apply for a working capital disaster loan in Bradford, Potter and Tioga counties is May, 26, 2015.

"Last year, Bradford, Potter and Tioga counties suffered terrible damage as a result of severe flooding and high winds," said Thompson. "The Small Business Administration provides for loan assistance to small businesses, small agricultural cooperatives, and non-profit organizations that have faced challenges due to these disaster events. I encourage those eligible entities to take advantage of these lending opportunities."

"These counties are eligible because they are contiguous to one or more primary counties in New York. The Small Business Administration recognizes that disasters do not usually stop at county or state lines. For that reason, counties adjacent to primary counties named in the declaration are included," said Frank Skaggs, director of SBA's Field Operations Center East in Atlanta.

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. With the exception of aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers or ranchers.

The loan amount can be up to $2 million with interest rates of 2.625 percent for private nonprofit organizations and 4 percent for small businesses, 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.

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