Indiana Small Businesses Can Apply for Economic Injury Disaster Loans

The U.S. Small Business Administration is reminding businesses in Indiana that Economic Injury Disaster Loans are still available to small businesses economically impacted by severe storms and flooding that occurred Jan. 7 through March 14, 2008.

The declaration covers the primary counties of Allen, Benton, Carroll, Cass, DeKalb, Elkhart, Fulton, Huntington, Jasper, Kosciusko, Lake, LaPorte, Marshall, Newton, Noble, Pulaski, St. Joseph, Starke, Tippecanoe, White and Whitley in Indiana and the contiguous counties of Adams, Clinton, Fountain, Grant, Howard, LaGrange, Miami, Montgomery, Porter, Steuben, Wabash, Warren and Wells in the State of Indiana; Cook, Iroquois, Kankakee, Vermilion and Will in the State of Illinois; Berrien, Cass and St. Joseph in the State of Michigan; and Defiance, Paulding, Van Wert and Williams in the State of Ohio.

"Businesses that suffered economic losses as a result of the disaster and want to apply for low-interest loans from SBA are urged to do so before the October 30 deadline," said Frank Skaggs, director of SBA field operations Center East.

Loans are available up to $1.5 million for small businesses that suffered substantial economic injury from the disaster. These 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 interest rate on these loans is 4 percent, with a maximum term of 30 years. The SBA determines the amount of economic injury and the terms of each loan based on the financial circumstances of each borrower. The SBA determines eligibility for the program based on the size and type of business and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant's financial condition.

To obtain a loan application, interested business owners should contact the SBA's Customer Service Center by calling 800/659-2955 (800/877-8339 for the hearing-impaired) or by emailing our customer service center at disastercustomerservice@sba.gov, Monday through Friday from 8 a.m. to 9 p.m., Saturday and Sunday from 9 a. m. to 9 p. m. EDT. Business disaster loan applications can also be downloaded from the SBA Web site at www.sba.gov/services/disasterassistance. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

Victims may also apply for disaster loans from SBA's secure Web site at https://disasterloan.sba.gov/ela/

The deadline to return applications for economic injury is Oct. 30, 2008.

For more information about the SBA's Disaster Loan Programs, visit  www.sba.gov/services/disasterassistance.