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The U.S. Small Business Administration revealed in the week that federal economic injury catastrophe financial loans are available to small companies, small farm cooperatives, small companies operating in aquaculture and most private non-profit associations of any size situated in the counties of Dillon and Horry in South Carolina because of Hurricane Irene which occurred in August.

“These counties are eligible because they are contiguous to one or more primary counties in North Carolina. The Small Business Administration recognizes that disasters do not usually stop at county or state lines. For that reason, counties adjacent to primary counties named in the declaration are included,” explained Frank Skaggs, director of SBA’s Field Operations Center East in Atlanta.

“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to assist eligible entities affected by the same disaster,” noted Skaggs.

Under this declaration, the SBA’s Economic Injury Disaster Loan program is readily available to eligible farm-related along with nonfarm-related organizations that encountered economic losses being a direct consequence of this catastrophe. Aside from aquacultural organizations, agricultural companies, farmers and ranchers are not eligible to apply to SBA.

Loan options for small business can be up to $2 million, with interest rates of 3 percent for non-profit organizations and 4 percent for small businesses. Terms can be up to 30 years. The SBA ascertains eligibility dependant upon the size of the candidate, type of activity as well as its financial means. The agency controls financial loan amounts as well as terms dependent upon each applicant’s financial affliction. These SBA small business 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 small business loan financing is not intended to replace lost sales or profits.