Deadline July 10 For Flood Victims’ SBA Loans
U.S. Small Business Administration (SBA) is reminding small businesses and most private nonprofit organizations in areas affected by severe storms and flooding occurring Aug. 8-10, 2024, of the July 10 deadline to apply for low-interest federal disaster loans to offset economic losses. The disaster area declaration covers Potter and Tioga counties as well as the New York counties of Allegany, Chemung, Livingston, Ontario, Schuyler, Steuben and Yates. SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses and private nonprofits providing non-critical services of a governmental nature impacted by financial losses directly related to the disaster.
Example of eligible organizations include, but are not limited to, food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges. EIDLs are available for working capital needs caused by the disaster and are available even if the small business or nonprofit did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.
The loan amount can be up to $2 million with interest rates of 4% for small businesses and 3.25% for private nonprofit organizations, and terms up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. These working capital loans may be used to pay fixed debts, payroll, accounts payable and other bills not paid due to a disaster.