The U.S. Small Business Administration announced this week that New Jersey residents and businesses affected by the flash flooding that occurred July 12 in Burlington, Hunterdon, Mercer, Warren, Camden and Gloucester counties may be eligible for low-interest federal disaster loans.
Physical disaster loans to repair or replace business property, as well as economic injury disaster loans to help businesses meet financial obligations during the recovery period, are available to eligible businesses and nonprofits in amounts up to $2 million. Disaster loans for eligible homeowners to repair or replace damaged homes and automobiles are also available for losses up to $200,000.
The deadline for physical damage applications is Sept. 27, 2021. The application deadline for the Economic Injury Disaster Loan (EIDL) program is April 29, 2022. Only uninsured or otherwise uncompensated disaster losses are eligible.
Interest rates on disaster loans are as low as 2.88% for businesses, 2% for nonprofit organizations, and 1.625% for homeowners and renters, with terms up to 30 years. Loan amounts and terms are set by the SBA based on each applicant’s financial condition.
Powerful storms on July 12 brought 6 to 10 inches of torrential rain over a span of just a few hours in parts of New Jersey, Pennsylvania and New York, causing flash flooding and damage to homes and businesses. Under the disaster declaration, loans are available to homes and businesses in the six New Jersey counties, 10 counties in Pennsylvania and two counties in New York. An SBA fact sheet with details about the disaster loans available related to the July 12 incident can be found here.
Applicants may apply online for loans using the Electronic Loan Application (ELA) via SBA’s secure website at DisasterLoanAssistance.sba.gov and should apply under SBA declaration # 17054, not for the COVID-19 incident. Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 or by emailing DisasterCustomerService@sba.gov. Loan applications may be downloaded at sba.gov/disaster.