SBA Disaster Loans Available
-to ag-related businesses impacted by weather-

(Washington, DC) - U.S. Rep. Collin Peterson (D-Minn) announced that the U.S. Small Business Administration will offer Federal Economic Injury Disaster Loans (EIDL) to small, non-farm agriculture-dependent businesses under two separate disaster declarations as follows:

The first declaration is for Seventh District Counties in Minnesota #10148 - due to losses that occurred from November 1, 2004 through April 30, 2005 for the counties of Clay, Grant, McLeod, Pope, and Wilkin. Also, contiguous counties of Becker, Douglas, Kandiyohi, Meeker, Norman, Otter Tail, Renville, Sibley, Stearns, Stevens, Swift, Todd, and Traverse. Applications for this declared disaster must be filed by March 20, 2006.

The second declaration is for Seventh District Counties in Minnesota #10187 - due to losses that occurred May 7, 2005 and continuing, and caused by excessive rainfall, hail and high winds for the counties of Beltrami, Clearwater, Grant, Kittson, Lake of the Woods, Marshall, Pennington, Roseau, Traverse, and Wilkin. Also contiguous counties of Becker, Big Stone, Clay, Douglas, Mahnomen, Otter Tail, Polk, Pope, Red Lake, Stearns and Stevens. Applications for this declared disaster must be filed by April 25, 2006.

Under this declaration, the SBA Economic Injury Disaster Loan program is available to small, non-farm agriculture-dependent businesses and small agricultural cooperatives that suffered economic injury as a direct result of the weathers effect on agriculture producers. A company's injuries should coincide with the dates of the declared disaster as noted above. 

A business that sells goods/services to agriculture producers may be unable to pay bills and/or meet expenses because of the reduced purchasing power of farmers and ranchers. Loan assistance is available only to the extent the business and its owners cannot meet necessary financial obligations due to the disaster. The SBA makes this determination. Also, only applicants who do not have "credit available elsewhere" are eligible to apply. Farmers and ranchers are not eligible to apply to SBA.

Eligible small businesses may qualify for loans of up to $1.5 million. These loans are available at a 4 percent interest rate with loan terms up to 30 years. SBA determines eligibility for the program based on the size and type of business and its financial resources. Loan amounts and terms are set by SBA and are based upon each applicant's financial condition. 

Interested business owners should contact the SBA Disaster Assistance Customer Service Center by calling the toll-free 1-800-659-2955 or visit SBA's website at www.sba.gov/disaster  for more information and to obtain a loan application. 

Peterson said, “It is very important to note that the caller should provide the SBA with the declaration number that they wish to apply under - either # 10148 or #10187. If anyone is having any problems with the application process or has questions regarding the program, please contact one of my offices for assistance.”

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