The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Pennsylvania about the upcoming June 11 deadline for applying for low-interest federal disaster loans. These loans are intended to help offset economic losses caused by Tropical Storm Debby, which took place on August 9-10, 2024.
The disaster declaration encompasses several counties in Pennsylvania: Bradford, Cameron, Centre, Clinton, Columbia, Lycoming, McKean, Mifflin, Montour, Northumberland, Potter, Snyder, Sullivan, Tioga and Union. Additionally, it includes Allegany, Chemung and Steuben counties in New York.
Through this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations with financial losses directly related to the storm. However, the SBA cannot offer disaster loans to agricultural producers such as farmers or ranchers unless they are small aquaculture enterprises.
These EIDLs are designated for working capital needs resulting from the disaster and can be utilized even if there was no physical damage sustained by the business or organization. The loans can cover fixed debts like payroll and accounts payable that went unpaid due to the disaster.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster," stated Chris Stallings of the SBA's Office of Disaster Recovery and Resilience. "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 3.25% for private nonprofits. Terms extend up to 30 years with interest not accruing nor payments due until one year after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant’s financial condition.
To apply online visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information. Telecommunications relay services can be accessed by dialing 7-1-1 for those who are deaf or hard of hearing.
Applications must be submitted by June 11.