Private nonprofits harmed by Isaias are eligible for disaster loans

Food kitchens, colleges, museums, homeless shelters and other private nonprofits on Long Island that were harmed by Tropical Storm Isaias are eligible for federal disaster loans, officials said Thursday.

The Physical Damage Loan, from the U.S. Small Business Administration, is for up to $2 million with an interest rate of 2.75% and 30-year term. The deadline to apply is Dec. 1 and the loan funds can be used to repair or replace buildings, machinery, equipment, inventory and other assets.

The Economic Industry Disaster Loan, also from SBA, has similar terms but the application deadline is July 2.

Nonprofits can qualify for both loans. "EIDL is available regardless of whether the organization suffered any physical property damage," an SBA official said Wednesday.

Businesses harmed by the Aug. 4 storm could be eligible for disaster loans if New York State determines the damage meets federal guidelines. The state has until early December to request federal aid for businesses, said Colin Brennan, a spokesman for the state Department of Homeland Security and Emergency Services.

"Since the day Isaias hit New York, we have worked continuously with our local partners to not only help communities clean up, but identify costs and damages, which may be eligible to receive federal funding to help them recover," he said Thursday. The state is "continuing to assess if we will be able to meet the federal requirements for other funding opportunities, such as EIDL from SBA."

Private nonprofits became eligible for SBA disaster loans after President Donald Trump signed a Federal Disaster Declaration last week. Gov. Andrew M. Cuomo said at the time the declaration would bring $35 million to areas hit hard by Isaias.

SBA officials said nonprofits can apply for disaster loans at DisasterLoanAssistance.sba.gov using Disaster Declaration #16694. Applications also can be downloaded at sba.gov/disaster and upon completion be sent via postal mail to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Rd., Fort Worth, Texas 76155.

More information is available by calling 800-659-2955 or sending an email to DisasterCustomerService@sba.gov.

The EIDL has played a significant role in helping small businesses and nonprofits that are struggling to survive the coronavirus. More than 298,000 loans were made as of Sept. 14, totaling $17.1 billion. SBA is continuing to accept applications.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.