The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in New Jersey regarding the upcoming deadline for federal disaster loan applications. These loans are intended to mitigate economic losses caused by drought and excessive heat that began on June 25, 2024.
The affected areas include the New Jersey counties of Hunterdon, Mercer, Middlesex, Morris, Somerset, Union, and Warren, as well as Bucks County in Pennsylvania.
Under this disaster declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses directly related to the disaster. However, these loans are not available to agricultural producers, farmers or ranchers unless they operate small aquaculture enterprises.
EIDLs can be used for working capital needs resulting from the disaster. This includes paying fixed debts, payroll expenses, accounts payable and other bills that could not be paid due to the disaster. Physical damage is not a prerequisite for loan eligibility.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “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. Interest does not accrue until one year after the first loan disbursement date.
Interested parties can apply online at sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 for more information on disaster assistance options. The deadline for submitting economic injury applications is August 11, 2025.