SBA Offers Disaster Loans to Residents and Businesses of New York

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By SBA Press | December 5, 2023

WASHINGTON – Businesses and residents in New York affected by the severe storms and flooding that occurred Sept. 28-30, 2023, are eligible to apply for low-interest disaster loans from the U.S. Small Business Administration, SBA Administrator Isabel Casillas Guzman announced today. 

Administrator Guzman made the loans available in response to a letter from New York Governor Kathy Hochul on Nov. 29, 2023, requesting a disaster declaration by the SBA. Businesses and residents in the declared area can now apply for low-interest disaster loans from the SBA. The declaration covers Kings and Nassau counties, and the adjacent counties of New York, Queens, Richmond and Suffolk in New York. 

“The SBA is strongly committed to providing the people of New York with the most effective and customer-focused response possible to assist businesses of all sizes, homeowners and renters with federal disaster loans,” said Guzman. “Getting businesses and communities up and running after a disaster is our highest priority at SBA.” 

To assist businesses and residents affected by the disaster, the SBA will open Disaster Loan Outreach Centers (DLOC), at the locations and times below:

Customer Service Representatives will be available at the DLOC to answer questions about the disaster loan program and help individuals complete their applications.  

“Businesses and private nonprofit organizations may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets,” said SBA’s New York District Director Beth L. Goldberg. 

For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage. 

Loans up to $500,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $100,000 to repair or replace damaged or destroyed personal property.  

Applicants may be eligible for a loan amount increase of up to 20 percent of their physical damages, as verified by the SBA for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter, sump pump, French drain or retaining wall to help protect property and occupants from future damage. 

Interest rates are as low as 4 percent for businesses, 2.375 percent for nonprofit organizations, and 2.5 percent for homeowners and renters, with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement. 

Applicants may apply online via the SBA’s secure website at sba.gov/disaster. 

To obtain disaster loan information call the SBA’s Customer Service Center at 800-659-2955 (if you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services), or send an email to DisasterCustomerService@sba.gov.  

The filing deadline to return applications for physical property damage is Feb. 2, 2024. The deadline to return economic injury applications is Sept. 4, 2024.