The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans to small businesses and private nonprofit (PNP) organizations in New Jersey to offset economic losses caused by freezing temperatures that occurred April 19 – April 22.
The disaster declaration, which covers all 21 New Jersey counties, makes the SBA’s Economic Injury Disaster Loan (EIDL) program available to eligible small businesses, small agricultural cooperatives, and PNPs — including faith-based organizations — with financial losses directly related to this disaster.
The SBA does not provide disaster loans to agricultural producers or farmers, except for aquaculture enterprises. Farmers impacted by the cold snap are directed to the Farm Service Agency (FSA) in the U.S. Department of Agriculture.
The SBA’s Economic Injury Disaster Loans are available for working capital needs caused by the disaster and are available even if the small business or PNP 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.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA on June 11. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.625% for PNPs, with terms of up to 30 years. Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition.
The deadline to return economic injury applications is Feb. 8, 2027.
