Federal loans available to businesses, nonprofits damaged during LI's harsh winter

Long Island small businesses impacted by winter storms that hit the region in late January and into February may be eligible for up to $2 million in low-interest disaster loans from the federal government, officials said.

The U.S. Small Business Administration said the loans would also be available to nonprofits and small agricultural cooperatives that suffered financial losses between Jan. 26 and Feb. 23 due to severe weather. Wintry conditions during that period  left some roads and businesses closed, and delayed mail, Newsday reported.

“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, said in a statement.

“We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.” 

Businesses and other organizations that are eligible for the Economic Injury Disaster Loan program can use the funds to cover costs incurred by the disaster. They do not have to have sustained physical damage to access the loans, the government said in a statement.

The loans can be used for several purposes, such as paying down certain debts, payroll and accounts payable.

Small businesses can see interest rates as low as 4% on terms of up to 30 years, while the lowest rates for nonprofits could be 3.625%, officials said. The deadline to apply for the loan is Dec. 21.

By Tiffany Cusaac-Smith

tiffany.cusaac-smith@newsday.com@T_Cusaac

Tiffany Cusaac-Smith is a general assignment reporter for Newsday. She previously worked at USA TODAY and is an alum of Howard University.