The U.S. Small Business Administration (SBA) has approved a statewide disaster declaration for New York state. Eligible small businesses may now apply for SBA Economic Injury Disaster Loans (EIDL).
EIDLs are working capital loans that help small businesses meet the ordinary and necessary financial obligations they are struggling to fulfill as a direct result of the disaster. The loans are intended to help them through the disaster recovery period. Small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes can apply for these loans.
While the law limits EIDLs to $2 million, the actual loan amount is determined by the SBA. It calculates the economic injury of the disaster, less insurance and other recoveries as well as possible contributions from the business and its owners or affiliates.
The SBA will review the small businesses’ credit history, ability to repay the loan and terms of collateral. Appropriate insurance coverage may also be required.
The maximum interest rate for this program is 3.750%. The SBA will determine the appropriate installment payment for each borrower, with a maximum 30-year repayment plan.
Eligible small businesses can go to https://disasterloan.sba.gov/ela to apply for EIDLs online or download an application form. Completed applications can be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Rd., Fort Worth, Texas 76155.
Applicants can call SBA’s Customer Service Center at 1-800-659-2955 or email email@example.com for more information on disaster assistance. Individuals who are deaf or hard-of-hearing can call 1-800-877-8339.
The SBA also has a network of resource partners to help businesses prepare their loan applications. Go to www.sba.gov/local-assistance to find local help.
The NYS Small Business Development Center network recommends submitting a request for assistance online at http://nyssbdc.org/appointment.html.