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 offset economic losses caused by the drought that began on June 8, 2024. The application deadline is August 11.
The disaster declaration affects several counties: Atlantic, Camden, Cumberland, Gloucester, and Salem in New Jersey; Kent and New Castle in Delaware; as well as Delaware and Philadelphia counties in Pennsylvania.
Through this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, nurseries, and private nonprofits experiencing financial losses due to the drought. However, agricultural producers, farmers, or ranchers are not eligible for these loans unless they are part of a small aquaculture enterprise.
EIDLs provide working capital needed due to the disaster and can be used even if there was no physical damage. Funds may cover fixed debts, payrolls, accounts payable, and other unpaid bills resulting from the disaster.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings from the SBA's Office of Disaster Recovery and Resilience. “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 starting at 4% for small businesses and 3.25% for PNPs over terms of up to 30 years. Interest does not accrue nor payments required until one year after the first loan disbursement. The specific loan amount and terms depend on each applicant’s financial situation.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Those with hearing or speech disabilities should dial 7-1-1 for telecommunications relay services.
The deadline for economic injury applications is August 11.