The Virginia Department of Agriculture and Consumer Services recently approved economic assistance for businesses in Henrico County, as well as 15 other localities, that experienced damage due to drought and excessive heat from May 25 to Aug. 27, 2011. The economic injury disaster loans are provided by the U.S. Small Business Administration (SBA) and are available to eligible farm-related and non-farm-related entities that suffered financial losses as a direct result of this disaster. With the exception of aquaculture and nursery enterprises, agricultural producers, farmers and ranchers are not eligible to apply to SBA for economic injury disaster loans for losses caused by drought conditions.

The loan amount can be up to $2 million with interest rates of three percent for private nonprofit organizations of all sizes and four percent for small businesses, with terms up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. 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 loans are not intended to replace lost sales or profits.

Disaster loan information and application forms may be obtained by calling the SBA’s Customer Service Center at 800-659-2955, sending an email to .(JavaScript must be enabled to view this email address) or by visiting http://www.disasterloan.sba.gov/ela. Completed loan applications must be submitted by Aug. 13, 2012.