The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in New York of the approaching deadline to apply for federal disaster loans. These loans aim to mitigate economic losses resulting from excessive winds and rain that occurred on August 19-20, 2024. The application deadline is set for July 28.
The disaster declaration encompasses several New York counties, including Albany, Fulton, Hamilton, Montgomery, Rensselaer, Saratoga, Schenectady, Warren, and Washington.
Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program offers financial support to small businesses, small agricultural cooperatives, nurseries, and private nonprofits directly affected by the disaster. However, the SBA cannot provide loans to agricultural producers such as farmers or ranchers unless they are involved in small aquaculture enterprises.
These EIDLs are intended for working capital needs arising from the disaster. They can be used even if there was no physical damage to the business or organization. The funds may cover fixed debts, payroll expenses, accounts payable, and other bills that went unpaid due to the disaster.
Chris Stallings from the Office of Disaster Recovery and Resilience at the SBA stated: “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover.” He added: “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
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 can extend up to 30 years without accruing interest or requiring payments until one year after 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 for more information about disaster assistance options. For those who are deaf or hard of hearing or have a speech disability, telecommunications relay services are available by dialing 7-1-1.
The deadline for submitting economic injury applications is July 28.