New SBA Disaster Loans for Sandy Losses
The reopening of the Superstorm Sandy disaster declaration made by the U.S. Small Business Administration gives shore businesses until Dec. 1 of this year to apply for property damage and economic injury claims. Businesses and private nonprofit organizations may borrow to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
The SBA wants businesses and nonprofits to be aware of the Economic Injury Disaster Loans that can help meet working capital needs caused by the disaster.
“These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits,” detailed a recent news release from the SBA.
Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage. The loan amount can be up to $2 million with interest rates as low as 4 percent for businesses, 3 percent for nonprofit organizations, and 1.688 percent for homeowners and renters, with terms up to 30 years.
The loan amount and terms are set by the SBA and are based on each applicant’s financial condition.
There is no cost to apply, and business counselors with Small Business Development Centers throughout the state can help prepare financial statements and assist with submitting the SBA disaster business loan application.
Anyone may apply online using the Electronic Loan Application via SBA’s secure website at https://disasterloan.sba.gov/ela.
Businesses and individuals may also obtain disaster loan information and application forms by calling the SBA’s 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.
Loan applications may be downloaded from sba.gov/disaster.
Completed applications may be returned to a center or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, Texas 76155.
The filing deadline to return applications for physical property damage as well as economic injury applications is Dec. 1. —M.S.