An SBA disaster loan can be smart business

NEW YORK – Survivors may not know about disaster help from the U.S. Small Business Administration that could lead to a smarter, faster recovery for businesses, homeowners or private nonprofits. There’s a loan for lost business caused by Hurricane Sandy. There’s also a loan available to a homeowner association to have a common area fixed, and there’s good news about when the first payment on any disaster loan is due. 

Economic Injury Disaster Loan

SBA offers a working capital loan to relieve the economic injury caused by the disaster.

A disaster loan is available to eligible businesses as well as private nonprofits even if property was not damaged by Hurricane Sandy.

These loans are for small businesses, agricultural cooperatives and certain private, nonprofit organizations to cover unpaid bills and lost business due to the disaster. Economic injury loans are also given in amounts up to $2 million, but the total of both physical damage and economic injury loans cannot exceed $2 million.

There are 17 New York counties eligible for Economic Injury Disaster Loans. The first 13 counties are those designated by the presidential disaster declaration for FEMA Individual Assistance. Those counties are Bronx, Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster and Westchester.

Four other counties are eligible because each shares a border with one of the 13 disaster-designated counties. These additional counties eligible for an Economic Injury Disaster Loan are Columbia, Delaware, Duchess and Greene counties.

Common Area Disaster Loans for Associations

SBA loans up to $2 million are also available to Homeowner Associations, Planned Unit Developments and similar common-interest developments. Individuals may not borrow money to repair common areas that are the responsibility of the association.

Deferred Disaster Loan Payments

The first payment for a disaster loan is due five months from the date of the SBA Note.

The deadline to apply for an SBA disaster loan is Feb. 27, 2013 for physical damage and July 31, 2013 for Economic Injury Disaster loans.

A simple and fast way to complete the application is online, using the SBA’s electronic loan application. Go to https://DisasterLoan.SBA.gov/ELA. Plus, you can receive an update on the status of your application by calling 800-659-2955 (TTY 800-877-8339 for the deaf and hard-of-hearing).

SBA customer service representatives are available to issue or accept low-interest disaster loan applications and answer questions at all New York State/FEMA disaster recovery centers and

SBA business recovery centers and Disaster Loan Outreach Centers. To locate the nearest business recovery center, visit www.sba.gov or call 800-659-2955 (TTY 800-877-8339).

To find the nearest disaster recovery center, check out the disaster recovery center locator at www.FEMA.gov/disaster-recovery-centers or, with a tablet or smartphone, go to m.fema.gov. You may also text “DRC” and your Zip Code to 43362 (4FEMA). For example, if you lived in Staten Island, you would text:  “DRC 10301.” Or call 800-621-3362 (TTY 800-462-7585).

More information is available by calling the SBA Disaster Customer Service Center toll-free number, 800-659-2955 (TTY 800-877-8339). Assistance is also available by sending an email to DisasterCustomerService@sba.gov or by visiting www.sba.gov.                                            

For more information on New York’s disaster recovery, visit www.fema.gov/SandyNY, www.twitter.com/FEMASandy, www.facebook.com/FEMASandy and www.fema.gov/blog.

FEMA’s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

Recovery assistance is available without regard to race, color, religion, nationality, sex, age, disability, English proficiency or economic status. If you or someone you know has been discriminated against, call FEMA toll-free at 800-621-FEMA (3362). For TTY call 800-462-7585.

FEMA’s temporary housing assistance and grants for public transportation expenses, medical and dental expenses, and funeral and burial expenses do not require individuals to apply for an SBA loan. However, applicants who receive SBA loan applications must submit them to SBA loan officers to be eligible for assistance that covers personal property, vehicle repair or replacement, and moving and storage expenses.