The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in New Jersey of the August 11 deadline to apply for low-interest federal disaster loans. These loans aim to offset economic losses caused by drought beginning on May 19, 2024.
The disaster declaration includes the New Jersey counties of Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, and Salem as well as Kent County in Delaware.
Under this declaration, 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, SBA cannot provide disaster loans to agricultural producers, farmers or ranchers except for small aquaculture enterprises.
EIDLs are intended for working capital needs caused by the disaster and are available even if there was no physical damage. The loans can be used for fixed debts, payroll, accounts payable and other bills not paid due to the disaster.
“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 and payments are not due until 12 months from the date of the first loan disbursement. Loan amounts and terms are determined based on each applicant’s financial condition.
To apply online visit 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. For people who are deaf or hard of hearing or have a speech disability please dial 7-1-1 for telecommunications relay services.
The deadline for returning economic injury applications is August 11, 2025.