The U.S. Small Business Administration is encouraging Brooklyn residents, private nonprofits and business owners affected by the May 20 severe storm and flooding to apply for low-interest federal disaster loans.
The SBA issued a disaster declaration in response to a request received from Governor Kathy Hochul, where damaging winds and thunderstorms dumped up to 2 inches of rain and produced flash floods in Brooklyn.
The declaration covers Kings, Bronx, Nassau, New York, Queens and Richmond counties, which are eligible for physical damage loans and Economic Injury Disaster Loans from the SBA. Businesses and private nonprofits are eligible to apply for business physical disaster loans and can borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
Homeowners and renters are eligible to apply for home and personal property loans and may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars and appliances. Homeowners may apply for up to $500,000 to replace or repair their primary residence.
Applicants may also be eligible for a loan increase of up to 20% of their physical damage, as verified by SBA, for mitigation purposes. Eligible mitigation improvements include strengthening structures to protect against high wind damage, upgrading to wind rated garage doors, and installing a safe room or storm shelter to help protect property and occupants from future damage.
SBA’s EIDL program is available to small businesses, small agricultural cooperatives, and private nonprofit organizations with financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
EIDLs are for working capital needs caused by the disaster and are available even if the business did not suffer any physical damage. They may be used to pay fixed debts, payroll, accounts payable, and other bills which could not be paid due to the disaster.
Interest rates are as low as 4% for businesses, 3.625% for private nonprofits, and 2.875% for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms, based on each applicant’s financial condition.
To apply online, visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
The filing deadline to return applications for physical property damage is Aug. 31. The deadline to return economic injury applications is March 30, 2027.
