Times Staff | Posted: Friday, May 25, 2007 12:00 am
Drought conditions in Santa Barbara, San Luis Obispo and four other counties have led to the U.S. Small Business Administration offering low-interest disaster loans to small, nonfarm businesses in 23 counties.
The loans are designed to offset economic losses from reduced revenues as a result of the drought conditions beginning Oct. 15, 2006, said Alfred E. Judd, director of the SBA/s Western Disaster Field Operations Center.
Small businesses may qualify for Economic Injury Disaster Loans of up to ,1.5 million to help them meet financial obligations and operating expenses that could have been met had the drought not occurred.
The loans have a 4-percent interest rate and a maximum term of 30 years. The deadline to apply is Jan. 9, 2008.
“Eligibility for these working capital loans is based on the financial impact of the disaster only, and not on any actual property damage,C Judd noted.
SBA makes such loans available only when the U.S. secretary of agriculture designates an agricultural disaster. Secretary Mike Johanns declared the drought disaster at the request of Gov. Arnold Schwarzenegger.
Except for nurseries, businesses primarily engaged in farming and ranching are not eligible for SBA disaster assistance. Farmers and ranchers can contact the Farm Services Agency for information about U.S. Department of Agriculture drought aid programs.
For more information and loan application forms, small-business owners
may call toll-free (800) 659-2955 or visit www.sba.gov/services/disaster
assistance.
In addition to Santa Barbara and San Luis Obispo counties, the loans are available in Colusa, Fresno, Glenn, Inyo, Kern, Kings, Lake, Los Angeles, Madera, Mariposa, Mendocino, Merced, Monterey, Napa, San Bernardino, Sonoma, Stanislaus, Tulare, Tuolumne, Ventura and Yolo counties.
May 25, 2007