SBA offering low interest disaster loans following July storms

GREENE COUNTY—The U.S. Small Business Administration has availability of low interest federal disaster loans for New York small businesses, private nonprofits, and residents affected by severe storms and flooding occurring July 28 - 29.

The SBA issued a disaster declaration in response to a September 24 request from Governor Kathy Huchul.

The declaration covers New York counties of Albany, Columbia, Dutchess, Greene, Rensselaer, Saratoga, Ulster, and Washington; Massachusetts county of Berkshire, as well as the Vermont county of Bennington, which are eligible for both physical damage loans and Economic Injury Disaster Loans from SBA.

Businesses and private nonprofits are eligible to apply for business physical disaster loans and may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.

Homeowners and renters are eligible to apply for home and personal property loans and may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars, and appliances. Homeowners may apply for up to $500,000 to replace or repair their primary residence.

Applicants may also be eligible for a loan increase of up to 20% of their physical damage, as verified by SBA, for mitigation purposes. Eligible mitigation improvements include strengthening structures to protect against high wind damage, upgrading to wind rated garage doors, and installing a safe room or storm shelter to help protect property and occupants from future damage.

The SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, and private nonprofits—including faith-based organizations—impacted by financial losses directly related to this disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.

EIDLs are for working capital needs caused by the disaster and are available even if the business did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills which could not be paid due to the disaster.  

Interest rates are as low as 4% for businesses, 3.625% for private nonprofits, and 2.875% for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA determines eligibility and sets loan amounts and terms based on each applicant’s financial condition.

To apply online, visit sba.gov/disaster. Applicants may also call National Support Network Center at (866) SBA-HELP for more information on SBA disaster assistance.

The filing deadline to return applications for physical property damage is November 23. The deadline to return economic injury applications is June 24, 2027.