$1M from SBA so far for LI disaster loans

Nearly a month after superstorm Sandy plowed through the area, the Small Business Administration has approved roughly $1.04 million in disaster loans to eight businesses on Long Island, according to figures from the federal agency.

The loan total includes $280,200 for five businesses in Suffolk County and $759,900 to three businesses in Nassau County, said Richard Daigle, a spokesman for the SBA. He added that the numbers change every day as more loans are approved.

There are 211 applications currently under review in Nassau, and more than 10,000 applications for SBA disaster business loans have been issued to Nassau businesses. In Suffolk, 93 applications are under review and about 3,600 applications have been issued to businesses. Loan applications take about 10 days to process from date of submission, Daigle said.

Business owners and individuals receive an SBA loan application after registering with the Federal Emergency Management Agency. They can also pick up applications at SBA Business Recovery Centers or local government offices.

The SBA is authorized to provide disaster loans to both businesses and homeowners in a declared disaster area. SBA can lend up to $2 million for 30-year terms to businesses, and disaster loan interest starts at 4 percent per year.

Daigle said the SBA has been encouraging business owners to apply for a disaster loan even if they do not plan to use it. Business owners are not required to take a disaster loan even if they are approved, but having the option of the loan is beneficial in case other financing options fall through, he said.

The window for applying for SBA disaster loans closes Dec. 31 -- 90 days after the disaster declaration was issued for Long Island.