SEELEY LAKE – The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses economically impacted by the Rice Ridge Fire that occurred this past summer. SBA acted under its own authority to declare a disaster following a request received from Gov. Steve Bullock Dec. 7.
Following a meeting Oct. 3 with the Department of Labor and Office of Tourism & Business Development, Gary Miller of Citizens Alliance Bank was troubled.
“At the meeting, members of the two agencies identified sources of grants and loans through various governmental programs,” wrote Miller in an email. “The problem is the available funding was for non-profit organizations.”
Miller inquired about disaster funding for profit businesses and was told to contact FEMA and SBA. After contacting the two agencies Miller was informed that Missoula County was not declared an Economically Injured County. He worked with Montana Disaster and Emergency Services in an effort to have the area recognized as economically injured due to the Rice Ridge Fire.
Through this process, Miller and MDES were able to get disaster declaration for eight counties in Montana, making SBA assistance available in Flathead, Granite, Lake, Mineral, Missoula, Powell, Ravalli and Sanders counties.
“SBA is strongly committed to providing the most affective and customer-focused response possible to assist Montana small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of this disaster,” said SBA Administrator Linda McMahon in a press release.
Small, non-farm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.
“These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing,” said Director Tanya N. Garfield of SBA’s Disaster Field Operations Center-West in a press release.
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 3.305 percent for small businesses and 2.5 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.
“The benefit to receiving disaster financing is low interest rate and longer repayment terms than conventional loans,” wrote Miller. While he realizes that some businesses may not want or need disaster financing, others may desire the opportunity.
“If Missoula County was not designated, there was no choice,” wrote Miller.
The Missoula County Small Business Development Center is cou free, personalized counseling to help effected businesses in their recovery. Businesses may contact the SBDC at University of Montana, 32 Campus Drive, Missoula, MT 59812 or call (406) 243-4770 to schedule an appointment.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The deadline to apply for economic injury is Sept. 11, 2018.
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