Streets in Millburn’s business district were lined with flood-damaged goods as shop owners began to clean up after the storm on Sept. 3, 2021. – EDWIN J. TORRES/NJ GOVERNOR’S OFFICE
The U.S. Small Business Administration said 5,275 loans were approved to provide $248 million in financial assistance for businesses and residents to help recover from damage caused by Hurricane Ida.
Loans were approved for a large portion of the state, including Bergen, Burlington, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Morris, Passaic, Somerset, Union and Warren counties.
“Hurricane Ida cut a wide swath of damage throughout the metropolitan area, and SBA’s mission-driven team continues to work hard to help affected small businesses and residents with their recoveries,” said SBA Atlantic Regional Administrator Marlene Cintron. “We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild.”
The loans can be up to $2 million with interest rates of 2.855% for small businesses and 2% for private nonprofit organizations, with repayment terms up to 30 years. However, the law restricts businesses with credit available elsewhere to a maximum 7-year term. Application requirements include credit history, repayment, and collateral.
The loans are not intended to replace lost sales and profits, but are to be used for everything from fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster had not occurred.
Small businesses, agricultural cooperatives, businesses engaged in aquaculture, and private nonprofit organizations in the disaster designated counties are still also eligible to apply for SBA Economic Injury Disaster Loans.
But, Cintron warns, that the application deadline is approaching. “I urge you to apply for an economic injury disaster loan to meet your business’ working capital needs before the June 6, 2022 deadline.”
Eligible businesses can apply online via the SBA’s secure website.
