More Information on SBA Economic Loans For Roanoke Businesses

The SBA’s Economic Injury Disaster Loan Program (or working capital loan program) is now accepting applications.
These loans are available to the following –
– small businesses
– small agricultural cooperatives
– small aquaculture businesses
– most private non-profit organizations
This includes:
– Businesses directly affected by the disaster
-Businesses that offer services directly related to the businesses in the declaration
– Other businesses indirectly related to the industries likely to be harmed by losses in their community (for example a manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product)

Criteria for loan approval includes:
– Credit history – applicant must have a credit history acceptable to SBA
– Repayment – SBA will determine whether the applicant business has the ability to repay the SBA loan
– Applicant business must be physically located in a declared county (Roanoke has been declared) and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons

– Eligible applicants may qualify for loans up to $2 million
– Interest rates are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years
– Eligibility for these loans are based on the size (must be a small business) and type of business and its financial resources
– Loans my be used to pay fixed debts, payroll, accounts payable, and other obligations that could have been paid had the disaster not occurred – loans are not intended to replace lost sales/profits or for expansion
– Collateral is required for loans over $25,000 – SBA accepts real estate as collateral; they do not decline a loan for lack of collateral, but require borrowers to pledge what is available