Drought-affected businesses may qualify for federal loans

March 01, 2013

Some southwestern businesses affected by the ongoing drought may be eligible for federal loans. From Phoenix, KJZZ’s Mark Brodie has more.

MARK BRODIE: The U.S. Small Business Administration will offer low-interest federal disaster loans to small, non-farm businesses in Arizona, and certain counties in California, New Mexico, Utah and Nevada. The loans will cover drought-related damage during January and most of February. U.S. Agriculture Secretary Tom Vilsack declared the disaster on Wednesday. The loans are up to $2 million, and can last as long as 30 years. Interest rates range from 2.8 to 4 percent, depending on the applicant. In a statement, an SBA spokesman says eligibility is based on the financial impact of the disaster, in this case, the drought, and not any actual property damage. The deadline to apply for a loan is late October.

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