In response to a request from Governor Kathy Hochul, the U.S. Small Business Administration (SBA) has issued an administrative disaster declaration following the Five Alarm Apartment Building Fire on January 10. This move opens up low-interest federal disaster loans for businesses, nonprofits, and residents in New York.
The disaster declaration specifically covers Bronx County, making it eligible for both Physical and Economic Injury Disaster Loans (EIDLs). Adjacent counties including Nassau, New York, Queens, Westchester, and Bergen County in New Jersey are eligible to apply only for SBA EIDLs.
Businesses and nonprofits can apply for business physical disaster loans of up to $2 million to repair or replace damaged real estate and other assets. Homeowners may borrow up to $500,000 for their primary residence and up to $100,000 for personal property such as clothing and furniture.
The SBA’s EIDL program is available to small businesses and private nonprofit organizations that have suffered financial losses due to the fire. "SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster," said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. He added that these loans play a crucial role in sustaining local economies post-disaster.
Interest rates are set at 4% for small businesses, 3.625% for nonprofits, and 2.563% for homeowners and renters with terms extending up to 30 years. Interest does not accrue until one year after the first loan disbursement.
Applications can be submitted online at sba.gov/disaster or through SBA's Customer Service Center at (800) 659-2955. The deadline for physical property damage applications is May 12, while economic injury applications must be submitted by December 15.