The U.S. Small Business Administration (SBA) is reminding small private nonprofit organizations in Connecticut about the upcoming deadline to apply for federal disaster loans. These loans are intended to help offset economic losses caused by severe storms, flooding, landslides, and mudslides that occurred on August 18-19, 2024. The deadline for applications is July 25.
The disaster declaration applies to the counties of Fairfield, Litchfield, and New Haven. Under this declaration, nonprofits providing non-critical services of a governmental nature can apply for both business physical disaster loans and Economic Injury Disaster Loans (EIDLs). Eligible organizations include food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.
Nonprofits may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. Additionally, applicants might qualify for a loan increase of up to 20% of their physical damages for mitigation purposes.
EIDLs are available for working capital needs resulting from the disaster even if there was no physical damage. These loans can be used to cover fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.
"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. "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."
Interest rates are as low as 3.25%, with terms extending up to 30 years. Interest does not accrue until 12 months after the first loan disbursement. Loan amounts and terms are determined based on each applicant's financial condition.
Applications can be submitted online at sba.gov/disaster. For more information on SBA disaster assistance, applicants may call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
The deadline for submitting economic injury applications is July 25.
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