U.S. Rep. Nick Rahall, D-WV, announced Thursday that federal disaster loans from the Small Business Administration (SBA) are now available to small businesses located in Greenbrier, McDowell, Mercer, Mingo, Monroe, Nicholas, Pocahontas, and Summers Counties for recovery from damages caused by drought and high temperatures beginning January 1, 2007.

"The availability of this assistance is welcome news for many hard-working West Virginians affected by the high temperatures and dry weather," Rahall said. "Prolonged drought can send shockwaves through the economy. These loans will help southern West Virginia's small businesses that are working to recover from these damaging 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 of up to $1.5 million. These loans are available at a 4 percent interest rate with loan terms of 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 16, 2008.