The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Massachusetts about the approaching deadline for applying for federal disaster loans. These loans are intended to help offset economic losses caused by the Lynnfield strip mall fire on September 10, 2024. The deadline for applications is July 28, 2025.
The disaster declaration covers Essex, Middlesex, and Suffolk counties in Massachusetts, as well as Hillsborough and Rockingham counties in New Hampshire. Through this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, and private nonprofits that experienced financial losses due to the disaster. However, the SBA does not provide disaster loans to agricultural producers, farmers, or ranchers unless they are small aquaculture enterprises.
EIDLs are designed to address working capital needs resulting from the disaster and can be used even if there was no physical damage to the business or nonprofit organization. The loans can cover fixed debts, payroll, accounts payable, and other bills that could not be paid because of the disaster.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA said: "SBA loans help eligible small businesses and PNPs cover operating expenses after a disaster, which is crucial for their recovery." He added that these loans "not only help business owners and PNPs get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."
Eligible applicants can receive loan amounts up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. Loan terms can extend up to 30 years. Importantly, interest does not accrue nor are payments due until 12 months from the date of the first loan disbursement. The specific loan amounts and terms depend on each applicant’s financial condition.
Interested parties can apply online at sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov for more information about SBA disaster assistance. Telecommunications relay services are available by dialing 7-1-1 for individuals who are deaf or hard of hearing.
The final date to submit economic injury applications is July 28, 2025.