June 2006

SBA extends disaster loan deadlines

Small business owners dealing with financial losses in the aftermath of Hurricanes Katrina and Rita have more time to apply for an SBA Economic Injury Disaster Loan, according to SBA Administrator Hector V. Barreto.

The new deadline for small businesses in the areas affected by Hurricane Katrina is June 28. Small businesses in the Hurricane Rita disaster areas have until July 26 to apply.

The Economic Injury Disaster Loan filing deadline remains July 24 for Florida business owners affected by Hurricane Wilma.

Small business owners in Louisiana, Mississippi, Alabama, Texas and Florida may apply for SBA’s Economic Injury Disaster Loan to cover ordinary expenses the company would have been able to handle if the disaster hadn’t occurred. The loan limit is $1.5 million, at a 4 percent interest rate with terms of up to 30 years.

To apply, small businesses can visit SBA’s website at www.sba.gov/disaster to download an application. They can also call the agency’s Customer Service Center at 800-659-2955, or send an e-mail to disastercustomerservice@sba.gov to obtain an application.

In the nine months since the Gulf Coast hurricanes struck, SBA has approved more than $2.15 billion in disaster loans for businesses.

Aside from the disaster recovery loans, more than $685 million have been made to small businesses in the affected areas through the SBA’s two conventional business loan programs: the 7(a) general business loan guarantee program, and the 504 Certified Development Company loan program.

Overall, more than $9.78 billion in disaster loans have been approved for more than 149,600 businesses, homeowners and renters following last year’s hurricanes. More than 99 percent of all applications received have been processed.

Source: Small Business Administration, www.sba.gov

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