The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in New York about the upcoming deadline of August 1 to apply for federal disaster loans. These loans are intended to mitigate economic losses resulting from severe storms and flooding that occurred between August 8-10, 2024.
The affected areas include the counties of Clinton, Essex, Franklin, Hamilton, St. Lawrence, and the Saint Regis Mohawk Tribe of New York. Under this disaster declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses directly related to the disaster. However, agricultural producers, farmers, or ranchers are not eligible for these loans unless they operate small aquaculture enterprises.
EIDLs are designed to cover working capital needs caused by the disaster. The loans can be used for fixed debts, payroll, accounts payable, and other bills that could not be paid due to the disaster. Notably, physical damage is not a prerequisite for loan eligibility.
"SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery," stated 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 3.25% for private nonprofits. Terms can extend up to 30 years with no interest accrual or payments required until 12 months after the first loan disbursement. The SBA determines loan amounts and terms based 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 email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
The deadline to submit economic injury applications is August 1, 2025.