The U.S. Small Business Administration (SBA) is now accepting applications for low-interest disaster loans available from business owners and non-profit organizations in north St. Louis County that suffered substantial economic injury as a result of the events in Ferguson.
Eligibility is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4 percent for small businesses and 2.625 percent for private, nonprofit organizations with terms up to 30 years, and are restricted to small businesses without the financial ability to offset the adverse impact without hardship.
As requested by Governor Jay Nixon, who asked for the disaster loan program, the SBA designated St. Louis County as the primary county for the declaration, and St. Charles, Franklin and Jefferson counties and the City of St. Louis as contiguous counties that are also eligible for the same SBA assistance.
SBA representatives are now staffing a Disaster Loan Outreach Center in Ferguson to issue loan applications, answer questions and explain the application process. Through Wednesday, Sept. 17, SBA representatives will be at the Ferguson Public Library, 35 North Florissant Rd., 9 a.m. – 6 p.m. Mondays through Fridays.
“The SBA is offering a below-market rate,” Bill Koontz, an SBA spokesman, told The American. “If you can qualify for a loan at a lower rate, of course that makes it easier. Terms can be as long as 30 years. We set the term based on the business owner’s ability to pay. Different business owners borrowing the same amount might pay a different amount over a different length of time.”
Koontz said that some businesses with real estate might be asked for real estate as collateral, though loans are available to some businesses with no collateral. “Many banks will just say, ‘Nope’ if there’s no collateral,” Koontz said.
He said the SBA will decline some applicants “with derogatory credit or who do not have enough revenue to repay the loan they are asking for.”
He said applicants who show up with all required paperwork can expect an answer within a week or 10 days, though depending on the complexity of the business and how many owners are involved, the wait for an answer could take up to 21 days.
“The SBA application process is streamlined compared to many banks,” Koontz said. “All this group, all we do is deal with people who have been through a traumatic event. We understand putting paperwork together is not something they want to do, it’s something they’re stuck doing. Our staff is experienced with working with people who have been through something hard.”
Now and after Sept. 17, applicants may also apply online using the Electronic Loan Application via https://disasterloan.sba.gov/ela. Disaster loan information and application forms are also available from SBA’s Customer Service Center by calling 800-659-2955 or e-mailing disastercustomerservice@sba.gov.
The filing deadline to return applications for economic injury is June 3, 2015.