Disaster loans still available from Jan. freeze
Freezing temperatures, hot weather and lack of rain during 2006
and 2007 caused trouble for many agricultural operations. But the
natural disasters have also had an impact on small businesses that
are not primarily engaged in farming or ranching.
Disaster loans still available from Jan. freeze
Freezing temperatures, hot weather and lack of rain during 2006 and 2007 caused trouble for many agricultural operations. But the natural disasters have also had an impact on small businesses that are not primarily engaged in farming or ranching.
The U.S. Small Business Administration staff recognize the hardships such disasters can cause for other small businesses and are offering economic injury disaster loans through January 9, 2008 for qualifying businesses.
San Benito was the primary county hit with lower than ordinary temperatures from Jan. 12 to Jan. 24, 2007. The freeze was especially hard on citrus fruits, including oranges, which in California are primarily grown to be sold in grocery stores and markets.
Small businesses in other neighboring counties are also eligible to apply for the loans, including Fresno, Merced, Santa Clara and Santa Cruz counties.
In addition, San Benito businesses also qualify to apply if they were hurt by drought, higher than normal temperatures and freezing conditions since Oct. 15, 2006.
The loans are up to $1.5 million and are meant to help small business owners meet financial obligations and operating costs which would have been met without the disaster.
“Eligibility for these loans is based on the finacial impact of the disaster only and not on any actual property damage,” said Alfred E. Judd, the director of SBA’s Disaster Field Operations Center – West.
The loans have a 4 percent interest rate and maximum term of 30 years.
On January 24, the SBA declared disaster in 40 California counties after the freeze. So far, $8.5 million in low-interest disaster loans has been approved for small businesses impacted by the freeze.
