In just over a month, the U.S. Small Business Administration (SBA) has approved more than $8.5 million in low-interest disaster loans for 242 businesses and residents in the areas affected by Superstorm Sandy. The SBA on Dec. 2 reopened the disaster loan filing period for businesses and residents recovering from Superstorm Sandy.
“The legislation that re-opened the Superstorm Sandy disaster loan filing period until December 1, 2016 will do much to contribute to the continued rebuilding of the disaster areas’ infrastructure,” said SBA Administrator Maria Contreras-Sweet.
“More than $8.5 million in low interest SBA disaster loans have been approved over the past month. This is a great start and we look forward to helping more small businesses, homeowners and renters with their long-term disaster recovery needs — regardless of whether they have an existing disaster loan, need more funds, or are applying for an SBA disaster loan for the first time.”
The Recovery Improvements for Small Entities (RISE) After Disaster Act of 2015 gives the SBA Administrator the authority to make disaster loans for areas affected by Superstorm Sandy for a period of one year. SBA has revised the disaster deadline for Superstorm Sandy in Connecticut, Maryland, North Carolina, New Jersey, New York, Rhode Island, Virginia, West Virginia and Puerto Rico.
Businesses and private nonprofit organizations may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.
Disaster loans up to $200,000 are available to homeowners to repair or replace disaster damaged or destroyed real estate. Homeowners and renters are eligible up to $40,000 to repair or replace disaster damaged or destroyed personal property.
Interest rates are as low as 4 percent for businesses, 3 percent for non-profit organizations and 1.688 percent for homeowners and renters, with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
Businesses and residents may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloan.sba.gov/ela.
Additional details on the locations of recovery centers and the loan application process can be obtained by calling the SBA Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to firstname.lastname@example.org.
The filing deadline to return applications for physical property damage is Dec. 1, 2016. The deadline to return economic injury applications is Dec. 1, 2016.
For more information about the SBA’s Disaster Loan Program, visit sba.gov/disaster.