TODAY'S PAPER
Good Morning
Good Morning
Business

SBA offers low-interest loans for those hurt by Ida

Rep. Thomas Suozzi looks at damage caused by

Rep. Thomas Suozzi looks at damage caused by the remnants of Tropical Storm Ida in Great Neck, Monday, Sept. 6. Credit: Newsday/Alejandra Villa Loarca

The U.S. Small Business Administration is accepting applications for low-interest disaster loans that may help businesses, nonprofit organizations and Long Island homeowners and renters recover from damage they suffered when the remnants of Hurricane Ida hit New York.

Businesses may receive a maximum of $2 million through loans for this disaster, homeowners may get up to $200,000 for real estate and Long Islanders, including renters, may access up to $40,000 for personal property like cars, furniture and appliances. Loans cannot exceed the value of damage incurred over the three days beginning Sept. 1, the SBA said.

The SBA will accept applications until Nov. 4 for Business Physical Disaster Loans, which support businesses and nonprofits in repairing or replacing damaged and destroyed property, as well as for Home Disaster Loans, which do the same for homeowners, renters and other individuals. Applicants have until June 6, 2022, to seek Economic Injury Disaster Loans, which help small businesses and nonprofits meet financial obligations that they'd otherwise struggle to keep because of disasters.

"SBA’s mission-driven team stands ready to help New York’s small businesses and residents impacted by Hurricane Ida," SBA Administrator Isabella Casillas Guzman said in a statement. "We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild."

To qualify, Long Islanders and their businesses must have a credit history that's acceptable to the SBA and demonstrate that they will be able to repay the funds. SBA will not decline a loan for lack of collateral but will require that whatever is available be pledged for loans greater than $25,000, the agency said.

The agency has two loans aimed at those dealing with damaged property — one for businesses and nonprofits, the other for homeowners and renters. The funds can be used to fix or replace real estate, inventories, supplies, machinery and equipment. Loans may have repayment terms of up to 30 years and interest rates ranging from about 2.9% to 5.7% for businesses and 1.6% to 3.1% for individuals, the SBA said. The agency has set the interest rate at 2% for nonprofits.

If approved, recipients may be able to get up to 20% more for mitigation projects that will protect property during future disasters, including installing sump pumps and retaining walls and elevating structures, SBA said.

The Economic Injury Disaster Loans are only available to small companies and nonprofits that demonstrate they can't independently finance their recovery through nongovernment sources. Those loans may have terms of up to 30 years and have a roughly 2.9% interest rate for businesses and 2% rate for nonprofits, the SBA said.

As of Monday, the agency has approved more than $3 million in loans to New York businesses and residents impacted by Ida, SBA said.

SBA is administering a separate application for COVID-19 Economic Injury Disaster Loans, which are designed to help small businesses and nonprofits that have struggled financially because of the pandemic. That initiative will end Dec. 31, 2021 or whenever funds are exhausted, whichever happens first.

As of Sept. 15, more than 325,000 loans have been approved in New York for a total of $25.38 billion -- and billions in funding remain, the SBA said.

Visit https://bit.ly/2XADGVx for more information and applications. Long Islanders can get in person guidance at the disaster recovery center located at Michael J. Tully Park in New Hyde Park.

More news