The U.S. Small Business Administration has announced that federal economic injury disaster loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and private non-profit organizations located in New Jersey that suffered as a result of weather conditions including freezes, excessive heat and drought between April 1 and Sept. 19.
The SBA’s disaster declaration includes the following counties in New Jersey: Mercer, Middlesex, Hunterdon, Somerset, Atlantic, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Monmouth, Morris, Ocean, Salem, Union and Warren.
“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to eligible entities affected by the same disaster,” said Frank Skaggs, director of SBA’s field operations center in Atlanta.
Under the declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster. With the exception of aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers or ranchers, who are covered separately through the Department of Agriculture. Nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.
The loan amount can be up to $2 million, with an interest rates of 2.625 percent for private nonprofit organizations and 4 percent for small businesses, with terms up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.
Applicants may apply online. Disaster loan information and application forms can also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 or by sending an email to email@example.com. Loan applications can also be downloaded. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Completed loan applications must be returned to SBA no later than June 5, 2017. For more information about the SBA’s Disaster Loan Program, visit the agency’s website.