Houston County part of disaster area
Gutknecht offers help
Posted: 6/22/04
U.S. Small Business Administration (SBA) Area Director Michael C. Allen announced on June 18 that low-interest Economic Injury Disaster Loans (EIDL) will be available to small businesses in Faribault, Fillmore, Freeborn, Houston, Martin and Mower counties in the State of Minnesota.
According to Allen, the SBA automatically added these counties because they is contiguous to one or more primary counties declared in the State of Iowa, as a result of the severe storms, tornadoes and flooding that began May 19.
By adding these counties, small businesses that were economically impacted by the storms can now apply to the SBA for working capital assistance.
Allen added, ìWe know that disasters donít usually stop at county or state lines and there may be some businesses in adjoining counties that were economically affected by the disaster.î
Small businesses that have suffered substantial economic injury are eligible for the EIDL program. Substantial economic injury is the inability of a business to meet its obligations and pay its ordinary and necessary operating expenses. For example, funds can be used to keep them current with payments on short-term notes, accounts payable, and installment payments on long-term notes. It provides relief from economic injury caused directly by the disaster and permits businesses to maintain a reasonable working capital position during the period affected by the disaster.
The SBA can provide up to $1.5 million in disaster assistance with terms up to 30 years. Loan terms are based on the economic injury and financial needs of the business, as determined by SBA. The interest rate on these loans is 2.750 percent.
Applications and program information is available by calling the SBA toll-free at 1-800-359-2227, Monday through Friday, from 7:00 a.m. to 5:00 p.m. EDT.
The deadline for filing these economic injury applications is February 25, 2005.
For more information visit SBAís website at http://www.sba.gov/disaster.
Editorís note: Neither the Houston County Emergency Management office nor the Houston County Farm Services Administration office in Caledonia had information on the disaster declaration as of June 21.
First District Congressman Gil Gutknecht also announced on June 17 that Fairbault, Fillmore, Freeborn, Houston, Martin and Mower Counties have been declared disaster areas due to damages caused by severe storms, tornadoes and flooding occurring on May 19 and continuing.
Applications for economic injury loans may be filed until the close of business on February 25, 2005. Constituents are encouraged to contact Malachi McNeilus in Congressman Gil Gutknechtís office at (507) 252-9841 or (800) 862-8632 for more information.
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