June 2007

SBA disaster loan program reopens to
Gulf Coast small business owners

President George W. Bush signed a bill into law on May 25 authorizing the U.S. Small Business Administration (SBA) to offer Economic Injury Disaster Loans (EIDLs) to Gulf Coast small business owners who suffered economic injury in the aftermath of the 2005 hurricanes Dennis, Katrina, Rita, and Wilma. These working capital disaster loans have a cap of $1.5 million at a 4 percent interest rate, with up to 30-year terms. 

Businesses that received EIDL loans in the earlier application period must count those loans toward the overall $1.5 million cap.

Pre-existing small businesses located in Alabama, Florida, Louisiana, Mississippi, and Texas counties and parishes that were declared disaster areas after the hurricanes occurred can apply for the EIDLs until Dec. 31. EIDL assistance is available only to small businesses to help them cover ordinary expenses they would have been able to handle if the disaster had not occurred.

Local Small Business Development Centers (SBDCs) are prepared to help small business owners complete their disaster loan applications.  Below are links to the SBDCs in the declared states:

• Florida, www.floridasbdc.com;
• Alabama, www.asbdc.org;
• Mississippi, www.mssbdc.org;
• Louisiana, www.lsbdc.org;
• Dallas, www.ntsbdc.org; and
• Houston, www.sbdcnetwork.uh.edu.

For a list of the declared counties and parishes, or to download a loan application, go to www.sba.gov.

Source: U.S. Small Business Administration, www.sba.gov

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