The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in New Jersey about the upcoming deadline to apply for federal disaster loans. These loans are intended to mitigate economic losses resulting from excessive heat between June 1 and July 31, 2024. The application deadline is set for July 15.
The disaster declaration affects several counties across three states: Essex, Hunterdon, Morris, Passaic, Somerset, Sussex, Union, and Warren in New Jersey; Orange County in New York; and Bucks, Monroe, Northampton, and Pike counties in Pennsylvania.
Through this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program offers financial assistance to small businesses, small agricultural cooperatives, nurseries, and private nonprofits with economic losses directly linked to the heatwave. However, the SBA cannot provide loans to agricultural producers or farmers unless they are small aquaculture enterprises.
These EIDLs are designed for working capital needs caused by the disaster and can be utilized even if no physical damage occurred. Businesses may use these funds for fixed debts, payroll obligations, accounts payable, and other bills that could not be paid due to the disaster.
"Through a declaration by the U.S. Secretary of Agriculture," said Chris Stallings of the SBA's Office of Disaster Recovery and Resilience. "SBA provides critical financial assistance to help communities recover."
Eligible applicants can receive loans up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. The loan terms can extend up to 30 years with no interest accruing or payments required until one year after the first disbursement. Loan amounts and terms depend on each applicant’s financial situation.
Applications can be submitted online at sba.gov/disaster or through SBA’s Customer Service Center at (800) 659-2955 or via email at 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 15.