SBA Offers Low-Interest Disaster Loans to Connecticut Small Businesses

Connecticut small businesses, including those involved in aquaculture, small agricultural cooperatives, and private nonprofit organizations, are eligible for loans as a result of excessive rainfall from Aug. 1 through Nov. 30, 2018.

The U.S. Small Business Administration announced March 29 that the loans would be available in every Connecticut county after a disaster declaration by the Secretary of Agriculture.

“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 eligible entities affected by the same disaster,” Kem Fleming, director of SBA’s Field Operations Center East said in a release.

Under the declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster.

With the exception of aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, and ranchers.

Loan Amounts, Eligibility

The loan amount can be up to $2 million with interest rates of 2.5% for private nonprofit organizations of all sizes.

The rate for small businesses is 3.67%. Terms are available for up to 30 years.

The SBA determines eligibility based on the size of the applicant, type of activity, and its financial resources.

The agency sets loan amounts and terms based on each applicant’s financial condition.

These 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.

Applicants may apply for loans online. The deadline is Nov. 20, 2019.

Information is also available via the SBA’s Customer Service Center at 800.659.2955 (800.877.8339 for deaf and hard-of-hearing) or via email at disastercustomerservice@sba.gov.