U.S. Rep. Nick Rahall, D-WV, announced Wednesday that federal disaster loans from the Small Business Administration (SBA) are now available to small businesses located in Mingo and Wayne Counties for recovery from damages caused by drought and high temperatures beginning February 1, 2007.

"The availability of this assistance is welcome news for Mingo and Wayne County residents affected by the ongoing drought," Rahall said. "Too little rain can mean trouble for the economy. These loans will help the small businesses in our region that are working to recover from these extensive drought conditions."

Under this declaration, SBA's Economic Injury Disaster Loan (EIDL) program is available to farm-related and nonfarm-related small business concerns and small agricultural cooperatives that suffered economic injury as a result of this disaster.

Eligible small businesses may qualify for loans up to $1.5 million. These loans are available at a 4 percent interest rate with loan terms up to 30 years. The SBA determines eligibility for the program based on the size and type of business and its financial resources. Loan amounts and terms are set by the SBA and are based upon each applicant's financial condition. Under this disaster declaration, the SBA cannot provide loans to agricultural producers.

Interested business owners should contact the SBA's Customer Service Center by calling 1-800-659-2955, Monday through Friday from 8 a.m. to 9 p.m., and Saturday from 9 a.m. to 5:30 p.m. EDT. Loan applications can also be downloaded from the SBA's Web site at www.sba.gov/services/disasterassistance. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Completed loan applications must be returned to the SBA no later than June 2, 2008.