Midwest counties receive loans for excessive rain, drought

11/9/2011

A total of 10 Indiana counties were recently made eligible for U.S. Small Business Administration disaster loans as a result of drought and excessive heat that began on July 2.

"These counties are eligible because they are contiguous to one or more primary counties in Illinois," said Frank Skaggs, director of SBA's Field Operations Center East in Atlanta, Georgia. "The SBA recognizes that disasters do not usually stop at county or state lines. For that reason, counties adjacent to primary counties named in the declaration are included.

SBA loans for a plethora of Illinois counties were also announced this week, with SBA officials citing the same drought and heat exposure that negatively affected Indiana farms.

Eligible Indiana counties include Benton, Gibson, Knox, Newton, Posey, Sullivan, Vermillion, Vigo and Warren.

Any farm-related and nonfarm-related areas where the SBA administers disaster loans can apply for recovery funds via the Economic Injury Disaster Loan program. Loans can total up to $2 million with interest rates of 3 percent for nonprofits and 4 percent for small businesses.

Late last month, numerous Indiana counties became eligible for disaster loans due to excessive rain, flooding and a flash flood that occurred between April 1 and July 7.