The U.S. Small Business Administration declared recently that federal government economic damage catastrophe loans are available to small business, small farming cooperatives, small corporations operating in aquaculture and the majority of private non-profit establishments of all sizes based in the counties of Dillon and also Horry in South Carolina as a consequence of Hurricane Irene that occurred in August.

“These counties are eligible because they are contiguous to one or more primary counties in North Carolina. The Small Business Administration recognizes that disasters do not usually stop at county or state lines. For that reason, counties adjacent to primary counties named in the declaration are included,” noted Frank Skaggs, director of SBA’s Field Operations Center East in Atlanta.

“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to assist eligible entities affected by the same disaster,” announced Skaggs.

Under this declaration, the SBA’s Economic Injury Disaster Loan program is offered to qualified farm-related and nonfarm-related businesses that encountered monetary losses as a direct result of this catastrophe. Aside from aquacultural businesses, agricultural companies, farmers along with ranchers are not eligible to apply to SBA.

Loan options for small business can be up to $2 million, with interest rates of 3 percent for non-profit organizations and 4 percent for small businesses. Terms can be up to 30 years. The SBA decides eligibility dependant upon the size of the candidate, form of undertaking as well as its financial assets. The agency establishes loan levels as well as terms dependent on every candidate’s fiscal affliction. The may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The small business financing loan is not intended to replace lost sales or profits.