ATLANTA – Residents and businesses in New Jersey who suffered damage due the remnants of Hurricane Ida on Sept. 1-3 2021 can use a disaster loan from the U.S. Small Business Administration (SBA) to build back stronger. Applicants affected by the recent disaster may be eligible for a loan increase up to 20 percent of their physical damages, as verified by the SBA, to cover the cost of improvements which protect a home or business and reduce property damage. Mitigation loan funds are in addition to the amount of the approved loan.
Some examples of mitigation projects to prevent future flooding may include landscaping property to improve water runoff and drainage, elevation of structures, adding a sump pump or safe room.
The SBA’s low-interest disaster loans are designed to be affordable. Interest rates are as low as 2.855 percent for businesses, 2 percent for nonprofit organizations and 1.563 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.
There are limits to the amount of available funding for the SBA’s mitigation program. SBA disaster loans to businesses and private non-profit organizations for any purpose may not exceed $2 million. Mitigation for homeowners is limited to the lesser of 20 percent of their verified losses or $200,000.
The disaster declaration covers Bergen, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Morris, Passaic, Somerset, Union and Warren counties in New Jersey. Economic Injury Disaster Loans only are available to small businesses and most nonprofit organizations in the following adjacent counties: Atlantic, Burlington, Camden, Cumberland, Monmouth, Salem and Sussex in New Jersey; New Castle in Delaware; Bronx, New York, Orange, Rockland and Westchester in New York; and Bucks, Delaware, Monroe, Northampton and Philadelphia in Pennsylvania.
To be considered for all forms of disaster assistance, applicants should register online at DisasterAssistance.gov or download the FEMA mobile app. If online or mobile access is unavailable, applicants should call the FEMA toll-free helpline at 800-621-3362. Those who use 711-Relay or Video Relay Services should call 800-621-3362.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloanassistance.sba.gov/ela/s/, and should apply under SBA declaration #17143, not for the COVID-19 incident.
Businesses and individuals may also obtain information and loan applications by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing), or by emailing DisasterCustomerService@sba.gov. Loan applications can also be downloaded at 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, 2022. The deadline to return economic injury applications is June 6, 2022.
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About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.