Penn State SBDC Accepting Disaster Loan Applications

November 9, 2001

University Park, Pa. — Penn State’s Small Business Development Center (SBDC) is accepting applications for disaster loan assistance from small businesses directly impacted by the destruction of the World Trade Center, damage to the Pentagon or related Federal action taken between Sept. 11 and Oct. 22, 2001.

As a result of the nationwide expansion of the U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loan program, disaster loan applications are now available through SBA’s Resource Partner, the Small Business Development Centers that are located throughout each state.

Donna Holmes, director of Penn State’s SBDC which serves Centre and Mifflin counties, said, "The SBDC completes the initial contact form, which is the Disaster Loan Inquiry Report and submits this to the servicing center in Niagara Falls, N.Y. This form indicates that the SBDC has given an application to a business. The SBDC has written guidelines that businesses can obtain to determine if they are eligible for these funds. We can also assist with completion of the application, which the business will mail to Niagara Fall for further processing."

According to the SBA, the disaster loans can provide an eligible small business with working capital to pay its normal operating expenses that a business owner could have paid but for the disaster. Ordinary operating expenses may include fixed debts, payroll, accounts payable and payments on other debts. Loan monies cannot be used to pay off or refinance existing debt.

Small businesses may apply for a loan up to $1.5 million. The interest rate is 4 percent with terms up to 30 years. SBA will determine the amount of economic injury, the term of the loan and the monthly payment, on a case-by-case basis. The application deadline under the expanded loan program is January 21, 2002.

To contact the Penn State SBDC in Centre County, call Donna Holmes at 814-863 —4293 or email SBDC@psu.edu The contract in the Mifflin County Lewistown office is Michael Ryan at (717) 247-1280.

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Contacts:

Barbara Hale (814) 865-9481 bah@psu.edu

Vicki Fong (814) 865-9481 vfong@psu.edu