The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans to small businesses and private nonprofit organizations affected by sinkholes on Interstate 80. The disaster occurred on December 26, 2024, prompting an administrative declaration issued on April 2, 2025, for economic injury disaster relief.
The declaration covers Morris County and adjacent counties, including Essex, Hunterdon, Passaic, Somerset, Sussex, Union, and Warren, making them eligible for Economic Injury Disaster Loans (EIDL) from the SBA.
These loans aim to provide working capital, even for small businesses or nonprofits that did not suffer physical damage. They can be used to cover fixed debts, payroll, accounts payable, and other bills disrupted by the disaster.
"SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery," said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."
Loan amounts can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.625% for nonprofits, and terms of up to 30 years. Interest and payments are deferred until 12 months after the first loan disbursement, and amounts and terms are determined by the applicant’s financial condition.
Starting April 8, SBA customer service representatives will be available at the Business Recovery Center (BRC) in Morris County to assist with the loan application process. Walk-ins are welcomed, but appointments can be made at appointment.sba.gov. The center is housed at the Wharton Municipal Building, with hours from 8:30 a.m. to 5 p.m. Monday through Friday, and 10 a.m. to 2 p.m. on Saturdays.
Disaster survivors can apply for a loan before settling with their insurance company. SBA can provide a loan for the total loss amount, provided the borrower agrees to use insurance payouts to repay the loan.
Applications can be submitted online at sba.gov/disaster, and additional assistance is available through the SBA Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. The filing deadline for economic injury applications is January 2, 2026.