Businesses in 12 rain-affected towns eligible for SBA-backed loans

Written by  //  July 23, 2011  //  Small Business  //  No comments

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The SBA will help local nonprofits with financial assistance.

Island small businesses in 12 towns affected by an episode of severe storms that caused flooding, mudslides, and landslides earlier this year can apply for recovery loans of up to $2 million, with U.S. Small Business Administration backing, the agency announced Friday.

The funding availability comes about a week after President Barack Obama signed an order declaring a state of emergency for damages resulting from the adverse weather occurring on the island between May 20 and June 8, 2011.

Examples of eligible organizations include food kitchens, homeless shelters, museums, libraries, community centers, schools and colleges, the SBA said.

The affected companies may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. The SBA may increase a loan up to 20 percent of the total amount, depending on its assessment of the application, the agency said.

“Private nonprofit organizations are urged to contact their municipality emergency managers to obtain information about local briefings.  At the meeting, nonprofit representatives will need to provide information about their organization,” said Frank Skaggs, director of SBA Field Operations Center East in Atlanta.

The severe storms affected the municipalities of Añasco, Caguas, Camuy, Ciales, Hatillo, Las Piedras, Morovis, Orocovis, San Lorenzo, San Sebastián, Utuado, and Villalba.

The SBA will work with the Federal Emergency Management Agency to determine if affected companies are eligible for additional reimbursement assistance to cover their repair expenses.

The filing deadline to return applications for physical property damage is September 12, 2011. The deadline to return economic injury applications is April 16, 2012.

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