Businesses in West Virginia are being reminded that disaster loans are still available to small companies and non-profit organizations, economically impacted by natural disasters that stormed the state from March 12 through April 9, 2010. Businesses that suffered losses due to floods, mudslides and landslides, can apply for low interest loans from the SBA and are required to do so before Dec 29.
As a result of the disasters, the business and non-profit organizations of any size can apply for the loans. Grants of up to $ 2 million are available to businesses that were rocked by disasters and suffered losses. Borrowers can receive the working capital loans to payback their fixed debts, payroll and other debts that are payable. The loans are meant to help out people who suffered losses during the disaster and could not pay back their bills. This form of loan, however, is not meant to replace sales or profits. Disaster loan is made available to businesses operating in places like Boone, Fayette, Clay, Jackson, Greenbrier, McDowell, Kanawha, Lincoln, Monroe, Mercer, Nicholas, Pocahontas, Putnam, Raleigh, Roane, Summers, Webster and Wyoming in West Virginia.
Interest rate for the loan is kept low. It is 3 percent in case of non-profits organization and 4 percent for businesses having maximum term of 30 years. The eligibility criteria for the loan are dependent on the size and type of business and availability of financial resources. The SBA decides upon the extent of economic injury and each loan term.
Application forms for the disaster loans can be downloaded from the official websites of SBA. The SBA’s customer service center can also be contacted for more information about the loan. Deadline for submission of application forms for economic injury is December 29, 2010.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to