County: Disaster loans possible for small businesses

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Companies adversely impacted by February storms urged to apply for aid

IMG_0990Small businesses that sustained substantial economic injury from February’s ice and snowstorms, regardless of physical damage, may be eligible for financial assistance from the U.S. Small Business Administration (SBA), county officials said.

“Small businesses and agricultural cooperatives that have lost business as a result of the ice and snowstorms between Feb. 4, 2014, and Feb. 15, 2014 may be eligible for the SBA’s Economic Injury Disaster Loan Program,” said Bob Kagel, deputy director for emergency management for the Chester County Department of Emergency Services.

Substantial economic injury is defined as the inability of a business to meet its obligations as they mature, and to pay its ordinary and necessary operating expenses, a county news release said. In order to make available these Economic Injury Disaster Loans, Chester County must show that at least five Chester County businesses sustained substantial economic injury from the ice and snowstorms, the release said.

“We’re asking small businesses in Chester County to complete and submit a form by March 7, 2014 to ensure funding will be made available,” said Kagel. “If we don’t get at least five applications, the SBA will not consider any loans for Chester County. ”

An Economic Injury Disaster Loan could help small businesses meet necessary financial obligations that the business would have met had the ice and snowstorms not occurred. The SBA provides Economic Injury Disaster Loans of up to $1.5 million – depending on the economic injury – only to those businesses unable to obtain credit elsewhere, the release said.

The interest rate on Economic Injury Disaster Loans cannot exceed four percent per year. For more information, and to complete the Economic Injury Survey form, visit www.chesco.org/des or call the Department of Emergency Services at 610-344-4335.

 

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Tags: Chester County Department of Emergency Services, Economic Injury Disaster Loan Program, U.S. Small Business Administration (SBA)

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