SBA OKs Governor’s Request for Aid to Businesses Hit By Flood Disaster
September 1, 2010, Juneau, Alaska - Alaska businesses affected by damage to, and closure of, the Taylor Highway received good news in the form of access to federal low-interest working capital loans.
The federal Small Business Administration responded to Governor Sean Parnell's request last week for a declaration of economic injury following heavy rainfall and flooding that washed out sections of the road between Chicken and Eagle, causing landslides, erosion and drainage damage. Significant periods of rainfall between July 10 and August 5 contributed to record flooding in the Yukon River basin, which limited summer highway traffic, disrupted commercial, private, and tourist travelers, and led to economic hardship for local and regional businesses.
"I am gratified that the SBA recognizes the serious economic injury that Interior businesses have suffered due to all the rain," Governor Parnell said. "The low-interest loans made available by the federal government will go a long way toward mitigating the ongoing effects of the highway closure and helping Alaska families and businesses bridge the seasons."
Small, non-farm businesses, small, agricultural cooperatives and most private, non-profit organizations of any size may qualify for Economic Injury Disaster Loans (EIDLs) of up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred.
"These loans may be used to pay fixed debts, payroll, accounts payable and other bills that could not be paid because of the disaster's impact," said Karen N. Forsland, SBA's Alaska District Director. "Disaster loans provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing."
SBA disaster personnel are in the state to issue loan applications, answer questions about SBA's disaster loan program, explain the application process and help business owners complete their applications. Application forms and other loan information are available by calling (800) 659-2955, e-mailing email@example.com, or by visiting SBA's website at www.sba.gov/services/disasterassistance.
Applicants may also apply online at https://disasterloan.sba.gov/ela. The filing deadline to return economic injury applications is May 27, 2011.