ATLANTA – Currently, 238 disaster loans have been approved in the amount of $11,179,300 by the Small Business Administration (SBA) for Connecticut businesses and residents with losses resulting from Hurricane Ida occurring Sept. 1-2, 2021. The SBA is encouraging businesses of all sizes, non-profit organizations, homeowners and renters to take advantage of the opportunity to apply for disaster assistance for their losses before the Jan. 28 deadline to apply for physical disaster damages.
“Our mission is to help businesses and residents rebuild and resume their normal lives as quickly as possible,” said Kem Fleming, director of SBA’s Field Operations Center East in Atlanta.
The disaster declaration covers Fairfield, New Haven, and New London, including the Mashantucket Pequot Tribal Nation and the Mohegan Tribal Nation counties in Connecticut which are eligible for both Physical and Economic Injury Disaster Loans from the SBA. Small businesses and most private nonprofit organizations in the following adjacent counties are eligible to apply only for SBA Economic Injury Disaster Loans: Hartford, Litchfield, Middlesex, Tolland, and Windham in Connecticut; Dutchess, Putnam, and Westchester in New York; and Kent and Washington in Rhode Island.
Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. Applicants may be eligible for a loan 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 a retaining wall to help protect property and occupants from future damage caused by a similar disaster.
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.
Disaster loans up to $200,000 are available to homeowners to repair or replace disaster damaged or destroyed real estate. Homeowners and renters are eligible up to $40,000 to repair or replace disaster damaged or destroyed personal property.
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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. To give applicants time to repair, replace and recover before their payments begin, the first payment due is not until 18 months from the date of the SBA Promissory Note.
Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. Applicants not approved for an SBA disaster loan are given reconsideration rights and can appeal the decline decision. Further, homeowners and renters declined for an SBA disaster loan are referred back to FEMA for grant consideration.
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 # 17258, not for the COVID 19 incident.
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 800-462-7585.
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 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. 28, 2022. The deadline to return economic injury applications is Aug. 1, 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.