SBA announced that 70 Arkansas counties where businesses have suffered losses are eligible to find loans. The business owners in Missouri, Louisiana, Tennessee, Oklahoma and Texas can apply for Federal disaster loans that have been made available at low interest rates. This support is there to offset economic losses caused due to extreme drought and heat.
SBA covers farmers and ranchers as well as businesses that are dependent on them. So, economic impact on businesses can be mitigated with disaster loans. It is available to private and nonprofit organizations of all sizes.
Economic Injury Disaster Loans (EIDLs) are available to help businesses overcome their financial deadlocks. The grants are made keeping into consideration a business’s requirement to meet operating expenses and to overcome losses due to disaster. So, if the damage happened due to heat and drought, EDIL can extend up-to $2 million and it can be used to overcome financial obligations. Losses caused due to heat and drought can also be nullified having received the EDIL support.
Interest rate for this loan is 4% for businesses and 3% for non-profit organizations. The term can extend up-to 30 years. It is available to small businesses and private non-profits that do not possess financial ability to offset the hardship caused due to natural disaster. The maximum term of the loan is 30 years and it is available for non-profits and private financial institutions.
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 email@example.com