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Schumer pledges to fight for federal aid for hurricane recovery

August 30, 2011

Businesses of all sizes and private, nonprofit organizations may apply for a Physical Disaster Loan of up to $2 million to repair or replace damaged real estate, equipment, inventory and fixtures. The loan may be increased by as much as 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements, as verified by SBA, to protect the property against future disasters of the same type. These loans will cover uninsured or under-insured losses.

Economic Injury Disaster Loans

Small businesses, small agricultural cooperatives and certain private, nonprofit organizations of all sizes suffering substantial economic injury may be eligible for an Economic Injury Disaster Loan of up to #2 million to meet necessary financial obligations – expenses the business would have paid if the disaster had not occurred.

Interest Rates

The interest rates on both these loans will not exceed 4 percent if the business owner does not have credit available elsewhere. Repayment can be up to 30 years, depending on the business’ ability to repay the loan. For businesses and nonprofit organizations with credit available elsewhere, the interest rate will not exceed 8 percent. SBA determines whether the applicant has credit available elsewhere.

AID TO FARMERS:

Emergency Loan Program (ELP) – This program is triggered when a quarantine is imposed by the Secretary, a natural disaster, or a natural disaster or emergency is designated by the President under the Stafford Act. FSA provides emergency loans to help producers recover from production and physical losses due to drought, flooding, other natural disasters, or quarantine. Emergency loans may be made to farmers and ranchers who own or operate land located in a county declared by the President as a disaster area or designated by the Secretary of Agriculture as a disaster area or quarantine area (for physical losses only, the FSA Administrator may authorize emergency loan assistance). Emergency loan funds may be used to: restore or replace essential property; pay all or part of production costs associated with the disaster year; pay essential family living expenses; reorganize the farming operation; and refinance certain debts.

Supplemental Revenue Assistance Payments Program (SURE) - SURE was authorized by the 2008 Farm Bill and covers crop revenue losses from quantity or quality deficiencies only those counties and contiguous counties declared disaster areas by the Agriculture Secretary or in cases where the overall production loss exceeds 50 percent. This program requires a natural disaster declaration by the Secretary for production losses.