press release courtesy of the Northern Maine Development Commission

WASHINGTON – Prompted by the widespread economic impact of the terrorist attacks on New York City and the Pentagon, the U.S. Small Business Administration has widened access to Economic Injury Disaster Loans (EIDLs) to small businesses across the country.

This action represents a major, unprecedented change in the disaster loan program. Currently, only businesses located in the communities declared disaster areas by the President (New York City and adjacent counties in New Jersey, Connecticut, Pennsylvania and Massachusetts; Arlington County in Virginia and adjacent counties in Virginia, Maryland and the District of Columbia) are eligible to apply for disaster loan assistance from the SBA.

On October 22 the SBA will publish regulations to authorize EIDL assistance across the country to eligible small businesses that have suffered substantial economic injury as a direct result of these attacks or a Federal action taken directly after the attacks. EIDLs will provide eligible small businesses with the working capital needed to pay ordinary and necessary operating expenses that they would have been able to pay had the disaster not occurred. The application deadline is January 21, 2002.

Small businesses may apply for a loan of up to $l.5 million if they have suffered substantial economic injury in the aftermath of last month’s terrorist attacks. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The interest rate on these loans is 4 percent, with a maximum term of 30 years. The SBA determines the amount of economic injury, the term of each loan and the payment amount, based on the financial circumstances of each borrower.

Businesses interested in applying for an economic injury disaster loan can contact the Northern Maine Development Commission or SBA disaster area office. In Niagara Falls, NY 14303 1-800-659-2955

To find out more about the SBA’s disaster assistance program visit the web site at www.sba.gov/disaster.