Posted on: Monday, November 26, 2001

Economic setbacks can mean SBA loan

Advertiser Staff

Small businesses suffering economic losses as a result of the Sept. 11 terrorist attacks may be eligible for special low-interest business loans under new guidelines adopted by the U.S. Small Business Administration.

Andrew Poepoe, the Hawai'i director for the SBA, is encouraging businesses dependent on tourism to check into the expanded eligibility for the Economic Injury Disaster Loan Program. The loans carry an interest rate of 4 percent and can be repaid over 30 years.

"If the reduction of airline flights to Hawai'i has directly affected businesses dependent on tourist spending, there is a good possibility those businesses would now qualify for assistance," Poepoe said.

Small businesses collectively employ the majority of Hawai'i's workers. With bankruptcy filings up 12 percent since Sept. 11 and almost 30,000 people applying for unemployment benefits, the SBA is looking for ways to help businesses through a difficult time.

For loan application and more information on the loan program, call the SBA Disaster Office in Sacramento, Calif., at 1-800-488-5323.