SBA Offers Disaster Assistance to Businesses and Residents of New York Affected by Severe Storms and Flooding on Aug. 24
New York businesses and residents affected by severe storms and flooding on Aug. 24, 2020, can apply for low-interest disaster loans from the U.S. Small Business Administration, Administrator Jovita Carranza announced today.
Administrator Carranza made the loans available in response to a letter from New York Gov. Andrew Cuomo on Nov. 4, requesting a disaster declaration by the SBA. The declaration covers Washington County and the adjacent counties of Essex, Rensselaer, Saratoga, and Warren in New York; and the counties of Addison, Bennington, and Rutland in Vermont.
“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 Carranza. “Getting businesses and communities up and running after a disaster is our highest priority at SBA.”
In accordance with health precautions for COVID-19, the SBA will not establish a field presence to assist survivors. However, the SBA will continue to provide customer service and conduct outreach virtually with webinars, skype calls, phone assistance, and step-by-step application assistance. The SBA has opened a Virtual Disaster Loan Outreach Center to help survivors apply online using the Electronic Loan Application via the SBA’s secure website at DisasterLoan.sba.gov. Virtual customer support representatives are available to help applicants complete the online application during these hours:
Virtual Disaster Loan Outreach Center (VDLOC) Open: Daily
Phone: (800) 659-2955
These services are only available for the New York disaster declaration #16772 as a result of severe storms
and flooding on Aug. 24, 2020, and not for COVID-19 related assistance.
Survivors should contact the SBA’s Disaster Customer Service Center at (800) 659-2955 for assistance in completing their loan applications. Requests for SBA disaster loan program information may be obtained by emailing FOCE-Help@sba.gov.
The SBA will conduct extensive outreach to ensure that those affected by the disaster have an opportunity to apply for assistance.
“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 Syracuse District Director Bernard Paprocki.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans 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 $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property,” said Michael Lampton, acting center director of SBA’s Field Operations Center East in Atlanta.
Applicants may be eligible for a loan amount increase 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 caused by a similar disaster.
Interest rates are as low as 3 percent for businesses, 2.75 percent for nonprofit organizations, and
1.188 percent for homeowners and renters with terms up to 30 years. Loan amount and terms are set by the SBA and are based on each applicant’s financial condition.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at DisasterLoan.sba.gov? and should apply under SBA declaration #16772, 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 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to DisasterCustomerService@sba.gov. Loan application forms can be downloaded from sba.gov/disaster. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The filing deadline to return applications for physical property damage is Jan. 5, 2021. The deadline to return economic injury applications is Aug. 6, 2021.