NEWARK, N.J. —While the May 1 deadline for homoweners, renters and businesses to receive disaster assistance for physical damages caused by Hurricane Sandy has passed, the the U.S. Small Business Administration is encouraging businesses to think about applying for Economic Injury Disaster Loans from the SBA..
"Local businesses who have suffered substantial economic injury may be eligible for an SBA Economic Injury Disaster Loan," said SBA'sNew Jersey District Director Al Titone. "When we talk about substantial economic injury, we're tallking about a business that is unable to meet its obligations and to pay its ordinary and necessary operating expenses. Economic Injury Disaster Loans provide the necessary working capital to help small businesses survive until normal operations resume after a disaster."
According to Titone, the SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. The loan amount will be based on a firm's actual economic injury and its financial needs, regardless of whether the business suffered any property damage.
The interest rate on EIDLs will not exceed 4 percent per year. The term of these loans will not exceed 30 years. The repayment term will be determined by a firm's ability to repay the loan. EIDL assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere.
New Jersey business owners have until July 31 to complete and return their SBA Eonomic Injury Disaster Loan. applications. The best way to initiate the process is to apply online at https://disasterloan.sba.gov/ela/ or to visit http://www.sba.gov/sandy."
According to Titone, small business owners with questions about SBA's Economic Injury Disaster Loan, should call SBA's Office of Disaster Assistance Customer Service Center at 1-800-659-2955, (for the deaf TTY 1-800-877-8339) or by sending an email to email@example.com
"So far, the SBA has approved over 11,800 disaster loans to New Jersey homeowners, renters and businesses for a total of $765 million," said Titone. " I encourage businesses who may have suffered ecomic injury to apply for this loan as soon as possible."
The filing deadline to return SBA Economic Injury Disaster Loan applications is July 31, 2013.