Our Klamath Basin Water Crisis
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SMALL BUSINESS DISASTER ASSISTANCE LOAN GUARANTEE PROGRAM
Klamath River Basin Chinook Salmon State of Emergency
By California Department of Food and
Eligible Applicants: Enterprises located in a county declared to be in a State of Emergency by the Governor that are directly engaged in the production of Chinook Salmon, including raising, harvesting, and processing Chinook Salmon. An applicant must have suffered physical damage or economic injury as a result of the disaster. "Physical damage" means real or personal property damaged or lost, including structural losses. "Economic injury" means an economic loss resulting in the inability of a business to meet its obligations and to pay its ordinary and necessary operating expenses, including production losses. In addition, the applicant must not be able to obtain credit on their own.
How to Apply: For assistance related to damage to the Klamath River Basin Chinook Salmon caused by poor ocean conditions, drought, water management, water quality, water flows, disease, and the elimination of access to historical spawning habitat, contact one of the following Financial Development Corporations (FDCs):
SAFE-BIDCO Cal Coastal Nor-Cal 1211 N. Dutton Ave., Suite D 221 Main Street, Suite 301 300 Frank H. Ogawa Plaza, Suite 251
Santa Rosa, CA 95401 Salinas, CA 93901 Oakland, CA 94612
(707) 577-8621 (831) 424-1099 (510) 208-7330
www.safe-bidco.com www.calcoastal.org www.norcalfdc.org
Guarantee Amount: Normally 80 to 95 percent of the loan is guaranteed, with the guaranteed portion of the loan not exceeding $500,000. The amount guaranteed is subject to negotiation between the FDC and the lender, but cannot exceed 95 percent.
Eligible Uses: Physical damage and economic costs related to the disaster. An applicant may apply for a physical disaster loan to help repair or replace damaged property to its pre-disaster
condition, or may apply for a loan to sustain production equal to one year of normal operational costs.
Loan Term: The loan guarantee may be a maximum of seven years.
Interest Rates and Fees: Interest rates range from Prime to Prime plus three percent, depending upon the amount of the loan that is guaranteed. The lender may charge for out-of-pocket expenses, as well as a loan fee of up to 1.5 percent of the loan amount. The FDC may charge a guarantee fee of up to one percent of the guarantee amount.
Collateral: Collateral is typically required, but each loan is tailored to meet the borrower’s financial situation.
Small Business Disaster Assistance Loan Guarantee Program for California Salmon Fisherman (PDF)
Page Updated: Thursday May 07, 2009 09:15 AM Pacific
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