U.S. Senator Daniel K. Inouye announced today that non-farm, small businesses in Hawaii hurt by the ongoing drought or by volcanic emissions can now seek federal low-interest disaster loans from the Small Business Administration.

Last week, Secretary of Agriculture Ed Schafer designated all of Hawaii's five counties as primary or neighboring disaster areas as a result of the drought. The Big Island was also declared a disaster area because of the vog-induced conditions.

Under federal law, once the agriculture secretary declares an agriculture disaster, the Small Business Administration is obligated to make available economic injury disaster loans to qualified small businesses. An agriculture disaster declaration also allows the Farm Services Agency to provide financial assistance to farmers and ranchers who meet federal requirements.

According to the SBA, the enterprises that apply and qualify for economic injury disaster loans can receive as much as $2 million to help meet operating expenses and other financial obligations. The loans carry a 4% interest rate, and a maximum term of 30 years. They are restricted to small businesses that would suffer economic hardship without the financial assistance.

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