Deadline looms for loans

Small business owners in Alleghany County have only a few weeks left to file for some small business loans to aid in recovery from hurricane damage.

The U.S. Small Business Administration reported Economic Injury Disaster Loans (EIDL) are still available to small business that were economically impacted by tropical storm Frances or Hurricane Ivan. For Frances victims, the deadline to file is June 10, while Ivan victims have until June 20 to file for help. Victims with economic losses from both storms are only required to complete one loan application.

“Small businesses that suffered economic injury losses from one or more of last year’s hurricanes and want to apply for a low-interest loan from the SBA are urged to do so before the deadline,” said SBA Disaster Area Director Michael C. Allen. “The deadlines vary by declaration and small businesses do not need to have physical damage to be eligible to apply for these loans.”

According to information provided by the SBA, small businesses may apply for a loan of up to $1.5 million if they have suffered substantial economic injury in the aftermath of last year’s historic hurricane season. The 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, said an SBA statement.

The loans have an interest rate of 2.9 percent, with a maximum term of 30 years.

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