SMALL BUSINESS NEWS

Disaster Loan Program Reopened to Small Business
Owners Affected by 2005 Gulf Coast Hurricanes

Gulf Coast small business owners who missed last July’s application deadline for the SBA’s Economic Injury Disaster Loans (EIDL) made available during the 2005 hurricane season now have another opportunity to apply.

These working capital disaster loans have a cap of $1.5 million at a 4% interest rate with up to 30-year terms. Businesses that received EIDL loans in the earlier application period must count those loans toward the overall cap. Only small businesses in operation when Hurricanes Dennis, Katrina, Rita and Wilma struck are eligible to apply for the loans.

Pre-existing small businesses located in Alabama, Florida, Louisiana, Mississippi and Texas counties and parishes that were declared disaster areas after Hurricanes Dennis, Katrina, Rita and Wilma can apply for the EIDLs until Dec. 31, 2007. EIDL assistance is available only to small businesses to help them cover ordinary expenses the company would have been able to handle if the disaster had not occurred.

For a list of declared counties, go to http://www.sba.gov/idc/groups/public/documents/sba_program_office/sba_dpl_2005_hurricanes.pdf.

To apply, visit the SBA’s website and download an application (Form 5) at http://www.sba.gov/services/disasterassistance/basics/howtoapply/index.html. Or, call the agency’s Customer Service Center at (800) 659-2955, or send an email to disastercustomerservice@sba.gov to obtain an application.

For help in preparing a disaster loan application, visit the Florida Small Business Development Center’s website at http://www.floridasbdc.com or call them at (850) 473-7800.

SBA Encourages Use of E-Payments

Borrowers and lenders can now make payments to the SBA online at Pay.gov. The site is a free, secure, government-wide financial management transaction portal managed by the U.S. Department of the Treasury’s Financial Management Service, developed in conjunction with the Federal Reserve Bank.

The Pay.gov website allows you to use it on a one-time basis by selecting the “SBA Payments” located under “Frequently Used Forms” on the right side of the homepage or become a self enrolled user by selecting “Should I register?” option located in the lower center of the homepage. By selecting the self enrolled option, you will need to complete the required form to be issued a user ID.

As an enrolled user, you will have the ability to make a single ACH payment, schedule recurring ACH payments, and view a list of your processed payments.