10/6/2005
SBA Business Disaster Loan Facts
by U.S. Small Business Administration
Following is a listing of brief facts pertaining to the two business disaster loans:
Business - Physical Disaster Loan:
Damage to real estate, machinery, equipment, inventory, supplies, leasehold improvements, etc.
- Amount: $1,500,000 max
- Less insurance proceeds, if any
Applies to businesses of any size plus charitable, religious, non-profit organizations, etc.
Collateral required if loan greater than $10,000
Interest:
Credit available elsewhere
- Businesses: 6.557%
- Non-profit Organizations: 4.750%
Credit NOT available elsewhere
- Businesses: 4.0%
- Non-profit Organizations: 4.0%
Terms:
Credit available elsewhere
- Businesses: 2 years max
- Non-profit Organizations: 30 years max
Credit NOT available elsewhere
- Businesses: 30 years max
- Non-profit Organizations: 30 years max
Business - Economic Injury Disaster Loan (EIDL)
Economic downturn (injury) in business due to direct loss of gross sales resulting from disaster
- Amount: $1,500,000 max
- Less insurance proceeds, if any
Applies only to small businesses that are for profit and cannot obtain credit elsewhere
Collateral required if loan greater than $5,000
Interest: 4.0%
Term: 30 years max
Note: Any combination of Disaster Loans for Physical Damage and/or Economic Injury for a given business and its affiliates cannot exceed $1,500,000.
You can access disaster notices for each state at: http://www.sba.gov/disaster_recov/disasterupdates.html. Arkansas does have disaster notices posted, but none that pertain to the Hurricanes.
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