SBA disaster loans available to businesses

The U.S. Small Business Administration is encouraging New Hampshire businesses affected by the recent flooding to apply for disaster loans.The SBA said home businesses and vacation rental owners also are eligible for disaster loans from the severe storms that caused flooding in the state from Aug. 26 through Sept. 6.A federal disaster declaration covers Carroll and Grafton counties. SBA loans can cover both physical damage and economic losses.In addition, small businesses and some private nonprofit organizations in Belknap, Coos, Merrimack, Strafford and Sullivan counties may qualify for SBA Economic Injury Disaster Loans.The SBA said interest rates are as low as 3 percent for nonprofit organizations and 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. The loans are for uninsured losses.The deadline to apply for property damage loans is Nov. 7. The deadline to file for economic injury loans is June 7, 2012.According to the SBA, businesses and private nonprofits of any size may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory and other business assets.The SBA said it may increase a loan up to 20 percent of the total amount of disaster damage to real estate and/or leasehold improvements to make improvements that lessen the risk of property damage by future disasters of the same kind.