Small businesses in the District of Columbia that have suffered economic injury due to the drought and high temperatures that have occurred since January 1, 2007, are eligible to apply for federal disaster loans.

The U.S. Small Business Administration announced the District’s eligibility in a news release issued October 31, 2007.  The news release included a statement from Frank Skaggs, director of SBA Field Operations Center East, who said: “The District of Columbia is eligible because it is contiguous to one or more primary counties in the Commonwealth of Virginia.  The Small Business Administration recognizes that disasters do not usually stop at county or state lines.  For that reason, when the District of Columbia is adjacent to primary counties named in the declaration, it is included.  When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the SBA issues a declaration to assist small businesses affected by the same disaster.”

Under the declaration, the SBA’s Economic Injury Disaster Loan program is available to farm-related and nonfarm-related small business concerns and small agricultural cooperatives that suffered financial losses as a direct result of this disaster.  Farmers and ranchers are not eligible to apply to the SBA, but nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.

Eligible small businesses may qualify for loans up to $1.5 million.  These loans are available at a four percent interest rate with terms up to 30 years.  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 upon each applicant’s financial condition.  Under this disaster declaration, the SBA cannot provide loans to agricultural producers.

Interested business owners should contact the SBA’s Customer Service Center by calling 1-800-659-2955 (1-800-877-8339 for the hearing-impaired), 8 a.m. to 10 p.m., Monday through Friday and noon to 10 p.m. on Saturday and Sunday.  Loan applications also can be downloaded from the SBA’s website at www.sba.gov/services/disasterassistance.  Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Forth Worth, TX  76155.

Completed loan applications must be returned to SBA no later than June 16, 2008.