NASHVILLE - The U.S. Small Business Administration today announced that continued drought in 14 Tennessee counties will result in federal Economic Disaster Loans becoming available to agricultural-related small businesses, cooperatives and nonprofit groups.
In a release, the agency defined the drought starting Oct. 18.
The declaration is for Rhea, Meigs, McMinn, Loudon, Knox, Anderson, Bledsoe, Cumberland, Fentress, Morgan, Putnam, Roane, Van Buren and White counties.
"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 eligible entities affected by the same disaster," explained Frank Skaggs, director of SBA's Atlanta-based Field Operations Center East, in a news release.
The declaration means the Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster.
With the exception of aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers or ranchers.
Nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.
The loan amount can reach $2 million with interest rates of 2.625 percent for private nonprofit organizations and 4 percent for small businesses, with terms up to 30 years.
Officials determine eligibility based on the size of the applicant's operation, type of activity and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant's financial condition.
The working capital loans may be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred.
Loans are not intended to replace lost sales or profits.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA's secure website at https://disasterloan.sba.gov/ela.
Disaster loan information and application forms may also be obtained by calling the SBA's Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov.
Loan applications can be downloaded from the SBA's website at www.sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Completed loan applications must be returned to SBA no later than June 26, 2017.