Etheridge Urges Small Businesses to Apply for SBA Disaster Loans

RALEIGH - U.S. Rep. Bob Etheridge (D-Lillington) today urged small business owners in Nash, Franklin and Sampson counties to apply for low-interest loans for disaster recovery made available by the U.S. Small Business Administration in the wake of Hurricane Isabel. Economic Injury Disaster Loans (EIDL) are loans for working capital to small businesses and small agricultural cooperatives if the business and its owners cannot provide for their own recovery from non-government sources.

"These loans are important tools to help small businesses reeling from Isabel get back on their feet," Etheridge said. "I encourage all who are eligible to apply, and I will continue to work to get our state all the assistance possible. Our state was already hurting economically. But, North Carolinians are tough. We'll be back in business again soon."

To apply for SBA disaster loans, please visit http://www.sba.gov/disaster_recov/index.html . For more information on EIDLs, visit http://www.sba.gov/disaster_recov/loaninfo/ecoinjury.html. The SBA Disaster Area 2 Office, which serves North Carolina, can be reached by calling 1-800-359-2227. The deadline for applications for economic injury is June 18, 2004.

The SBA can provide up to $1.5 million in disaster assistance to a business. This loan cap includes both economic injury and physical damage assistance. The loan amount will be based on actual economic injury and financial needs. Business owners may request an EIDL for the amount of economic injury and operating needs, but not in excess of what their businesses could have paid had the disaster not occurred. The interest rate on EIDLs cannot exceed 4 percent per year. The term of these loans cannot exceed 30 years.