SBA Offers Loans to Small Businesses Affected by 95 Closure
The U.S. Small Business Administration (SBA) announced low interest federal disaster loans are now available to small businesses and private nonprofit (PNP) organizations in Idaho who sustained economic losses caused by the Highway 95 landslide and closure beginning on March 16. The SBA issued a disaster declaration in response to a request received from Gov. Brad Little on April 18.
The disaster declaration covers the Idaho counties of Ada, Adams, Boise, Canyon, Custer, Gem, Idaho, Lemhi, Payette, Valley and Washington as well as the Oregon counties of Baker and Wallowa.
Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, nurseries, and PNPs with financial losses directly related to this disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.
EIDLs are for working capital needs caused by the disaster and are available even if the business did not suffer any physical damage. They may be used to pay fixed debts, payroll, accounts payable and other bills not paid due to the disaster.
The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.625% for PNPs with terms up to 30 years. Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition.
Beginning Wednesday, April 23, SBA customer service representatives will be on hand at a Virtual Business Recovery Center to answer questions about SBA’s disaster loan program, explain the application process and help individuals complete their application.
The Virtual Business Recovery Center is open Monday – Friday 8:00 a.m. – 4:30 p.m. Pacific Time. Email: FOCWAssistance@sba.gov Phone: (916) 735-1531.
