Because of last year's drought, owners of small businesses in several Utah counties are eligible to apply for disaster loan assistance from the Small Business Administration due to recently passed legislation.
The drought incidence period is Jan. 1-Aug. 3, 1988, for Daggett, Rich and Summit counties and March 1-Sept. 20 for Box Elder, Cache, Tooele and Weber counties. The application filing deadline is June 12 for all counties.William F. Hanson, SBA national director, said federal law permits owners of small businesses located in counties contiguous to ones already determinded eligible for loans by the SBA to also apply for the disaster loan assistance. All counties contiguous to Box Elder along with those contiguous to declared counties in Wyoming are now eligible because of the new legislation.
Small, non-farm businesses, including nurseries, and small agricultural cooperatives that suffered substantial economic injury of reduced revenues to farmers and ranchers due to the 1988 drought are eligible to apply for financial assistance.
Applicants must demonstrate substantial economic injury and must be unable to offset such injury by using their own credit and personal resources, Hanson said.
All small, non-farm businesses and small agricultural cooperatives may qualify for working capital loans of up to $500,000 to meet financial obligations which would have been met had not the drought occurred. The interest rate for all loans under this program is 4 percent.
Interested people are invited to write to the SBA, P.O. Box 13795, Sacramento, Calif. 95853-4795 or to call toll-free 1-800-468-1710.