SBA Reopens Disaster Loan Filing Period for Superstorm Sandy Survivors
The SBA has reopened the filing period for survivors in all states affected by Superstorm Sandy to apply for low-interest disaster loans.
The new filing deadline for physical damage and economic injury losses is Dec. 1, 2016.
The recently approved Recovery Improvements for Small Entities (RISE) After Disaster Act of 2015 gives the SBA Administrator the authority to make disaster loans for Superstorm Sandy for a period of one year.
The bill authorizes the SBA to revise the disaster deadline for major presidential declarations for Superstorm Sandy in Connecticut, Maryland, New Jersey, New York, and Rhode Island.
Additionally, the SBA will be accepting applications under its related agency declarations for North Carolina, Puerto Rico, Virginia, West Virginia and certain counties in Maryland.
“The additional time for businesses, homeowners, and renters to request federal disaster loans will go a long way in continuing to support the rebuilding efforts of the communities affected by Superstorm Sandy,” says SBA Administrator Maria Contreras-Sweet.
“I want to thank the chairmen and ranking members of the Senate and House Small Business Committees for their leadership on this issue. We look forward to working with them to make sure the needs of small businesses are met.”
The SBA will open disaster centers across select counties in the affected areas and review activity levels on a continuous basis.
Loan Purposes, Borrowing Limits, Interest Rates
Businesses and private nonprofit organizations may borrow up to $2 million to repair or replace real estate, machinery, equipment, inventory, and other business assets damaged or destroyed in the disaster.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit 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 are also available to homeowners and renters—up to $200,000 to repair or replace damaged real estate and up to $40,000 for personal property.
Interest rates are as low as 1.688% for homeowners and renters, 3% for nonprofit organizations, and 4% percent for businesses, with terms up to 30 years.
Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
Survivors may apply online using the Electronic Loan Application.
For additional details on the locations of recovery centers and the loan application process, call the SBA Customer Service Center at 800.659.2955 (800.877.8339 for the deaf and hard-of-hearing) or send an email.
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