Springfield, MO -- If your small business suffered economic injury as a result of the May tornadoes, severe storms and flooding, you may be eligible for financial assistance from the U.S. Small Business Administration (SBA).
The SBA's Economic Injury Disaster Loan (EIDL) Program is available for small businesses that suffered economic injury, regardless of physical damage, from the May disaster and are unable to obtain credit elsewhere. Economic injury is the inability of a business to meet its obligations as they mature and to pay its ordinary and necessary operating expenses.
Loans up to $1.5 million are available to provide relief from economic injury caused directly by the disaster and permit a business owner to maintain a reasonable working capital position during the recovery period.
The SBA will not refinance long-term debts or provide working capital that was needed by the business prior the disaster. Nor can the SBA provide EIDL assistance for businesses with access to financial resources from banks and normal lending channels.
"For small business owners hurt by the May disaster who do not have access to conventional lending resources, the SBA can be a lifesaver," said Mike Karl, federal coordinating officer.
Business owners in the following disaster-declared counties and adjacent counties are eligible to apply to the SBA for EIDL loans: Adair, Andrew, Audrain, Barry, Barton, Bates, Benton, Bollinger, Boone, Buchanan, Butler, Caldwell, Callaway, Camden, Cape Girardeau, Carroll, Cass, Cedar, Chariton, Christian, Clark, Clay, Clinton, Cole, Cooper, Crawford, Dade, Dallas, DeKalb, Dent, Douglas, Dunklin, Franklin, Gasconade, Greene, Henry, Hickory, Howard, Howell, Iron, Jackson, Jasper, Jefferson, Johnson, Knox, Laclede, Lafayette, Lawrence, Lewis, Lincoln, Linn, Livingston, Macon, Madison, Maries, Marion, McDonald, Miller, Mississippi, Moniteau, Monroe, Montgomery, Morgan, New Madrid, Newton, Osage, Ozark, Perry, Pettis, Phelps, Pike, Platte, Polk, Pulaski, Ralls, Randolph, Ray, Reynolds, Saline, Scotland, Scott, Shannon, Shelby, Stoddard, St. Charles, St. Clair, St. Francois, Ste. Genevieve, St. Louis, Stone, Taney, Texas, Vernon, Warren, Washington, Wayne, Webster, and Wright.
While the deadline for homeowners and renters to apply for FEMA assistance programs and SBA disaster-loans is July 7, 2003, the deadline to apply to the SBA for EIDL is February 6, 2004. To request an application or to learn more about the EIDL program, call the SBA at 800-366-6303 (TDD: 817-267-4688 for the hearing-impaired).