The United States Small Business Administration has announced that it has re-opened on Dec. 2, 2015 the filing period of low-interest disaster loans for the survivors of Superstorm Sandy in all affected areas.
"The additional time for businesses, homeowners and renters to request federal disaster loans will go a long way in continuing to support the rebuilding efforts of the communities affected by Superstorm Sandy," said SBA Administrator Maria Contreras-Sweet. "I want to thank the chairmen and ranking members of the Senate and House Small Business Committees for their leadership on this issue. We look forward to working with them to make sure the needs of small businesses are met."
According to their press release, the SBA Administrator is authorized under the recently approved Recovery Improvements for Small Entities (RISE) After Disaster Act of 2015 to make disaster loans for Superstorm Sandy for a period of one year. SBA is also sanctioned under the bill to revise the disaster deadline for major Presidential declarations for Superstorm Sandy in Connecticut, Maryland, New Jersey, New York, and Rhode Island. Applications under its related agency declarations for North Carolina, Puerto Rico, Virginia, West Virginia, and certain counties in Maryland, will also be accepted by the SBA.
Businesses and private non-profit organizations may have a loan of up to $2 million to restore or replace disaster damaged or ruined real estate, machinery and equipment, inventory, and other business assets.
The SBA also offers Economic Injury Disaster Loans for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations. This kind of loan is used to help small businesses to meet working capital needs caused by the disaster, and is available regardless of whether the business suffered any physical property damage.
Homeowners can acquire up to $200,000 of Disaster Loan to repair or replace disaster damaged or destroyed real estate. They are also eligible of up to $40,000 to repair or replace disaster damaged or destroyed personal property.
Homeowners and renters will have a 1.688 percent interest rate, while non-profit organizations will have a three percent rate, and a four percent rate for businesses will apply, with terms of up to 30 years.
Details on the locations of recovery centers and the loan application process can be obtained by calling the SBA Customer Service Center at 800-659-2955 FREE (800-877-8339 FREE for the deaf and hard-of-hearing), or by sending an e-mail to disastercustomerservice@sba.gov.
Claimants can also file for applications through the Electronic Loan Application (ELA) of the SBA.
The deadline for filing of physical damage and economic injury losses is Dec. 1, 2016.