The local business owners of JOPLIN, Mo struggling to overcome May 22nd tornado now are left with less than three weeks to apply for ‘Economic Injury Disaster Loan’ (EIDL) from the US Small Business Administration.
Companies and non-profit organizations can apply for disaster loans even if they did not sustain physical damages due to the tornado. The loans can be utilized by companies to pay bills and salaries to employees. It can also be used to repair damages caused as a result of the storm. Businesses can apply for the grant even if their own office is not hit by the storm.
EIDL is specifically meant to keep the business in operation until the recovery takes place. The deadline for the EDIL is Feb 9th. The original deadline was Aug 26th for businesses on the storm path. But, now the deadline has been extended to Feb 9th.
Kevin Wynne, spokesman SBA, says that Economic Injury Disaster Loan deadline is kept at a later date because it takes time for businesses to understand the impact and level of damage caused by natural disaster. It also takes time for businesses to realize that they have started to lose revenue. It also requires time to generate profit-and-loss statements.
SBA, so far, made 92 ‘Economic Injury and Disaster Loans’ to Jasper and Newton County businesses. The loans are valued more than $11.7 million. So, far $250,000 is approved for not-for-profit organizations.
The terms of the loans is kept at 30 years with no cost for applying. Maximum amount that can be borrowed is $2 million. The default rate for SBA loans nationwide is 10 percent.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to firstname.lastname@example.org