ECNETNews reports that the U.S. Small Business Administration (SBA) is urging small businesses, agricultural cooperatives, aquaculture enterprises, and most private nonprofit organizations to act quickly, as the deadline to apply for federal working capital loans is approaching. These loans are specifically for those impacted by the tornado and heavy rains which began on July 2, 2023, with applications due by August 5, 2024.
This assistance is available for primary counties in New York, including Clinton, Franklin, Lewis, and Onondaga, and extends to nearby counties such as Cayuga, Cortland, Essex, Hamilton, Herkimer, Jefferson, Madison, Oneida, Oswego, and St. Lawrence in New York, along with Chittenden and Grand Isle in Vermont.
The SBA’s Economic Injury Disaster Loan (EIDL) program is designed to help eligible entities that faced financial difficulties due to this disaster. This program supports a wide range of businesses and private nonprofits, but traditional agricultural producers, farmers, or ranchers are not eligible, except for those in aquaculture.
Eligible businesses and organizations can apply for loans of up to $2 million, with interest rates set at 4% for small businesses and 2.375% for private nonprofit organizations. Repayment terms extend up to 30 years. The SBA evaluates eligibility based on the applicant’s size, operations, and financial condition, determining loan amounts and terms according to specific needs.
These loans are intended to support critical expenses such as fixed debts, payroll, accounts payable, and other operational costs arising from the disaster. It is crucial to understand that these loans do not cover lost sales or profits.
As the application deadline of August 5, 2024, approaches, the SBA encourages all eligible businesses and organizations impacted by the tornado and heavy rains to submit their applications promptly. These loans play a vital role in facilitating recovery and ensuring business continuity during challenging times.
By leveraging these loans, affected entities can manage financial obligations and stabilize their operations in the aftermath of the disaster. The SBA remains committed to supporting resilience and recovery for small businesses and nonprofits through its disaster loan programs.
