Roe Announces Cocke County Businesses are Eligible for Federal Help
Businesses and Ag Cooperatives may be eligible for an Economic Injury Disaster Loan through SBA
Dec 11, 2009 -
WASHINGTON, DC – Today, Phil Roe, M.D., Member of Congress (TN-1) announced that Cocke County businesses and small agricultural cooperatives may be eligible for an Economic Injury Disaster Loan through the U.S. Small Business Administration (SBA) due to the landslide on Interstate 40, which occurred on October 25, 2009. SBA determined that businesses in Cocke County could be eligible for this loan assistance because Cocke County borders Haywood County, NC – the primary county declared a disaster area.
“The closure of I-40 in North Carolina has had a devastating impact on Cocke County businesses,” said Roe. “I want them to know that help may be available, and I urge impacted business owners to contact SBA.”
To apply, please note the following information:
INCIDENT AND DATE: Landslide on Interstate 40
Occurred October 25, 2009 and continuing
APPLICATION DEADLINE: August 24, 2010
TO OBTAIN AN ECONOMIC INJURY LOAN APPLICATION: 1-800-659-2955
Type of Disaster Loan:
• Economic Injury Disaster Loans (EIDLs) – are working capital loans to help small businesses, small agricultural cooperatives and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
• EIDL assistance is available only to entities and their owners who cannot provide for their own recovery from non-government sources, as determined by the U.S. Small Business Administration (SBA).
• Credit History – Applicants must have a credit history acceptable to SBA.
• Repayment – Applicants must show the ability to repay the loan.
• Collateral – Collateral is required for all EIDLs over $5,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.
Businesses and Small Agricultural Cooperatives without Credit Available Elsewhere: 4.000%
Non-Profit Organizations without Credit Available Elsewhere: 3.000%
• The law authorizes loan terms up to a maximum of 30 years.
• SBA determines the term of each loan in accordance with the borrower's ability to repay. Based on the financial circumstances of each borrower, SBA determines an appropriate installment payment amount, which in turn determines the actual term.
Loan Amount Limit:
• Economic Injury Disaster Loans (EIDL) – The law limits EIDL(s) to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.
Loan Eligibility Restrictions:
• Noncompliance: Applicants who have not complied with the terms of previous loans are not eligible. This includes prior borrowers who did not maintain required flood insurance.
• To protect each borrower and the Agency, SBA requires borrowers to obtain and maintain appropriate insurance. Borrowers of all secured loans (over $5,000) must purchase and maintain hazard insurance for the life of the loan on the collateral property. By law, borrowers whose collateral property is located in a special flood hazard area must also purchase and maintain flood insurance for the full insurable value of the property for the life of the loan.
For more information, contact SBA Disaster Assistance Customer Service Center at
(800) 659-2955, firstname.lastname@example.org, or www.sba.gov/services/disasterassistance.