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FACT SHEET ECONOMIC INJURY DISASTER LOANS
Apr 16, 2008 U. S. SMALL BUSINESS ADMINISTRATION FACT SHEET ECONOMIC INJURY DISASTER LOANS SBA DISASTER DECLARATION DUE TO THE GOVERNOR'S CERTIFICATION OF ECONOMIC INJURY STATE: COUNTIES: Broward, Charlotte, Duval, Lafayette, Lee, Martin, Okeechobee, Palm Beach and Suwannee; and contiguous counties of Baker, Clay, Collier, Columbia, DeSoto, Dixie, Gilchrist, Glades, Hamilton, Hendry, Highlands, Indian River, Madison, Miami-Dade, Nassau, Osceola, Polk, Sarasota, INCIDENT AND DATE: Drought that occurred April 1, 2007 and continuing. APPLICATION DEADLINE: May 16, 2008 TYPE OF LOAN: Economic Injury Disaster Loans (called EIDLs) are working capital loans to meet necessary financial obligations, which cannot be met because of the disaster. ELIGIBILITY LIMITATIONS: Only small businesses and small agricultural cooperatives are eligible. The economic injury must have been the direct result of the disaster designated. The applicant business must be located in the declared disaster area or in a contiguous county. Loan assistance is available only to the extent the business and its owners cannot meet necessary financial obligations due to the disaster. This determination is made by SBA. Only applicants who do not have "Credit Available Elsewhere" are eligible. That determination is made by SBA based on whether the business and its owners cannot recover from the disaster injury with their own resources or by borrowing from non-government sources. Farmers and ranchers are not eligible. Assistance for farmers and ranchers is provided by the U. S. Department of Agriculture. Certain other businesses may not be eligible. These include businesses engaged in the buying and selling of investment property. CREDIT REQUIREMENTS: These are loans and applicants must show that they have repayment ability. Loans in excess of $5,000 must be secured with collateral. Generally, this will include a lien on the applicant's business and/or personal real estate. However, loans will not be declined for lack of a fixed amount of collateral. INTEREST RATES: The interest rate for small businesses and small agricultural cooperatives unable to obtain credit elsewhere is 4.000% . LOAN AMOUNT: The total loan amount to any one business entity (including affiliates) cannot exceed $1,500,000. Actual loan amounts are determined by SBA based on the amount of disaster-caused economic injury and the business' disaster-caused financial needs. LOAN TERM: Loan terms not to exceed 30 years are available. Loan Terms are individually determined based upon what is reasonable in consideration of the applicant's repayment ability. FLOOD INSURANCE REQUIREMENTS: Applicants with existing SBA loans which require them to maintain flood insurance are not eligible if they have not maintained their flood insurance. Generally, if collateral securing the loan is located in a special flood hazard area, the applicant may be required to purchase and maintain flood insurance as a condition of any loan. For additional information, contact:
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