Small Businesses Eligible For Economic Injury Loans

Economic Injury Disaster Loans are available to businesses, agricultural cooperatives and non-profit groups in north central Connecticut affected by the severe weather and tornados that occurred in western Massachusetts between June 1 and June 15.

The loans, offered by the U.S. Small Business Administration, are geared towards helping small businesses, co-ops and non-profit groups recover from the economic effects of the severe weather. They are limited to $5,000 per loan and applicants cannot have other sources of credit.

Intended to function as working capital, the loans help eligible borrowers “meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster,” according to a fact sheet from the SBA.

The Connecticut Department of Emergency Management & Homeland Security (DEMHS) is publicizing the loans, which became available after President Barack Obama declared the storms and tornados a major disaster on June 15.

Tom Gavaghan is the DEMHS coordinator for region 3, roughly analogous to Hartford County with the addition of towns including Ellington, Somers, Tolland and Vernon. He provided four ways to get more information about economic injury loans as well as application forms:

• Call the SBA’s Customer Service Center: 800-659-2955.
• E-mail the SBA at disastercustomerservice@sba.gov.
• Download a loan application.
• Apply for a loan online.

The window to apply lasts until March 15, 2012, allowing applicants some time to determine if they were directly affected and if economic injury loans are right for them.

The SBA specifically mentions small aquaculture businesses and private non-profit groups as possible beneficiaries.

More assistance options, including personal home and property loans, are available to Massachusetts residents and businesses in Hampden and Worcester counties, the areas hit hardest by the storm.