In an effort to ease the economic pain sustained to small businesses from the aftermath of the September 11th terrorist attacks, the Small Business Administration is offering Small Business owners substantial Economic Injury Disaster Loan (EIDL). Over $240 million dollars has already been approved in order to help small businesses during this difficult time.

These loans are intended to provide the amount of working capital needed by a small business to pay its necessary operating expenses and obligations until operations return to normal. This assistance will help small business owners nationwide avoid bankruptcy, or closings.

These EIDLs are available to small businesses that suffered substantial economic injury as a direct result of the terrorist attacks or a federal action (like airport closings) taken as a result of the attacks.

The nationwide expansion of this SBA disaster loan program is unprecedented in the agency's 49-year history. Typically, disaster declarations are contained to a geographic area following a disaster. Due to the broad reach of the repercussions of the events of September 11th, the SBA is offering these low interest loans on a national level.

In addition to businesses adversely affected in the immediate areas of the attacks, small business owners who supplied or provided services to a business or industry that was affected are also eligible for loans. In addition, businesses that are dependent upon a business or other organization that was closed or suspended its operations, such as airports, are also eligible.
One of the first loans approved went to a woman-owned small business based in Dallas, Texas. Supa Tech, Inc. was in the early stages of a major computer and telephone cabling job for Salomon Smith Barney, which was located in the World Trade Center.

Owner Sue Glover said she was planning to sell her building and lease it to get the cash to stay in business. The SBA loan was just the infusion of money she needed to keep her company operating.

Small business owners can use these working capital loans to cover operating expenses. The loan limit is $1.5 million, with a 4 percent interest rate and a maximum term of 30 years. Small business owners must apply for the EIDLs by April 22, 2002.

For information on how to apply for these loans, visit SBA's web site at http://www.sba.gov/disaster, or call 1-800-827-5722 (SBA's Answer Desk).