The U.S. Small Business Administration says low-interest loans are now available to small ag-related businesses and some nonprofits in 20 Indiana counties that may have been impacted by excessive rain last spring.
The SBA Economic Injury Disaster loans are not available to agricultural producers, farmers and ranchers.
“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the SBA issues a declaration to eligible entities, affected by the same disaster,” says Kem Fleming, director of SBA’s Field Operations Center East.
Under this declaration, the loan program is eligible to farm related and nonfarm-related entities that suffered financial losses as a direct result of this disaster.
The loan amount can be up to $2 million with a 4% interest rate for small businesses and 2.75% for nonprofits.
The SBA says 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. The loans are not intended to replace lost sales or profits.
The loans are available in the following counties: Boone, Clinton, Crawford, Dubois, Grant, Hamilton, Hancock, Howard, Jasper, Lake, La Porte, Madison, Marion, Newton, Perry, Porter, Spencer, Starke, Tipton and Warrick in Indiana.