The U.S. Small Business Administration (SBA) is alerting small businesses, agricultural cooperatives, aquaculture enterprises, and most private nonprofit organizations that the deadline to apply for federal working capital loans is fast approaching. These loans are for those impacted by the tornado and heavy rains that began on July 2, 2023. Applications must be submitted by August 5, 2024.
This assistance covers primary counties in New York, including Clinton, Franklin, Lewis, and Onondaga. It also extends to surrounding counties such as Cayuga, Cortland, Essex, Hamilton, Herkimer, Jefferson, Madison, Oneida, Oswego, and St. Lawrence in New York, as well as Chittenden and Grand Isle in Vermont.
The SBA’s Economic Injury Disaster Loan (EIDL) program offers support to eligible entities that experienced financial setbacks due to the disaster. While the program caters to a broad range of businesses and private nonprofits, it does not include traditional agricultural producers, farmers, or ranchers, except those in aquaculture.
Businesses and organizations eligible for these loans can receive up to $2 million. Interest rates are set at 4% for small businesses and 2.375% for private nonprofit organizations, with repayment terms of up to 30 years. The SBA assesses eligibility based on the size of the applicant, the nature of their operations, and their financial situation. Loan amounts and terms are determined according to the specific financial needs of each applicant.
These loans are designed to cover essential expenses such as fixed debts, payroll, accounts payable, and other operational costs that could have been managed if the disaster had not occurred. It is important to note that these loans are not intended to recover lost sales or profits.
For those interested in applying, detailed information and online applications are available at SBA.gov/disaster. The SBA’s Customer Service Center can be reached at (800) 659-2955 for additional details and assistance with disaster loans. Questions can also be directed via email to disastercustomerservice@sba.gov. Individuals who are deaf, hard of hearing, or have a speech disability can use telecommunications relay services by dialing 7-1-1.
The SBA urges all eligible businesses and organizations affected by the tornado and heavy rains to submit their loan applications by the August 5, 2024 deadline. These loans are vital for aiding recovery and ensuring the continuation of operations during this challenging period.
By utilizing these loans, affected entities can manage their financial responsibilities and stabilize their operations post-disaster. The SBA’s goal is to support the resilience and recovery of small businesses and nonprofits through its disaster loan programs.
As the deadline nears, eligible parties are encouraged to apply promptly to secure the necessary financial support. The SBA is dedicated to helping small businesses and nonprofits recover from the impacts of natural disasters and continue contributing to their communities and local economies.
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