SBA approves $1.04M in disaster loans to LI businesses so far

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 the Tuesday figures from the federal agency.

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 four percent per year.

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 everyday as more loans are approved. The current figures are from end of day Tuesday.

There are 211 applications currently under review in Nassau, and more than 10,000 applications for SBA disaster business loans have been issued. 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 the day of submission, Daigle said.

Business owners and individuals receive a 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.

Daigle said the SBA has been encouraging business owners to apply for a disaster loan even if they do not plan on using 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 added.

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