SBA loans available

Help is now available for businesses in the Golden Plains who are having difficulty meeting normal operating expenses through a low interest Economic Injury Disaster Loan from the U.S. Small Business Administra-tion.

Loans are available to help businesses in: Chase, Dundy, Frontier, Furnas, Gosper, Hayes, Hitchcock, Perkins, Red Willow, Cheyenne, Decatur and Rawlins counties, as well as 30 other counties throughout Nebraska, Colorado, Kansas, South Dakota and Wyoming.

The loans are available to help business meet normal operating expenses that cannot be met due to the effects of a disaster. Unseasonably cold spring temperature, high winds, frost, and drought which occurred from October 1, 2001, and continuing, caused many farmers and ranchers to experience reduced incomes which may have had an adverse economic effect of businesses depending upon these producers. Farmers and ranchers are not eligible for this loan program but may be eligible for disaster assistance though other federal agencies. However, nurseries that are victims of drought disaster can apply.

Due to weather, many producers experienced crop losses and were not able to purchase goods and services at normal levels. Businesses that are dependent upon these producers may have experienced decreased sales, reduced gross profit margins, increased accounts receivable or difficulty in moving payable and overhead expenses that would have been met had the disaster not occurred.

Refinancing of long-term debt, however, is not eligible under this program. The loan is designed for those businesses with substantial disaster-related needs and is intended to supplement monies the business owner can provide from other sources.

Loans may be approved for up to $1,500,000 for actual disaster-related financial needs of the business. Interest rates are four percent and terms may extend to 30 years, depending upon the repayment ability of the individual applicant. To qualify, businesses must be small by SBA's size standard. Businesses which can meet their financial needs through other sources are not eligible.

To obtain an application or receive additional information, interested business owners may call the SBA toll-free at 1-800-366-6303 or TDDz 817-267-4688 for the hearing impaired. The deadline for filing an application is January 30, 2003