SBA Issues Loans to N.Y. Businesses Hit by Blackout

Businesses disrupted by the prolonged power outage are eligible for up to $1.5 million.

By Melanie Brooks | 
 

Following a 10-day power outage that brought life to a virtual halt in parts of New York, the Small Business Administration is now offering disaster loans to affected companies.

Small businesses located in Queens, Kings, New York, Bronx, and Nassau counties that lost power during the July blackout are eligible for assistance. An estimated 25,000 Consolidated Edison customers were affected, including 750 businesses.

"As a result of this declaration, low-interest loans are available to small businesses that sustained economic injury due to the power outage," Frank Skaggs, an SBA field operations director, said in a statement. "If your business suffered substantial economic injury from this event, you are eligible to apply for assistance."

Eligible businesses may qualify for loans up to $1.5 million -- available at a 4% interest rate for terms up to 30 years. Eligibility is determined based on the size and type of business as well as its financial resources.

The SBA is now operating a temporary Loan Assistance Center in the Commerce Bank located at 31-04 Ditmars Boulevard in Astoria, N.Y.

Con Ed is also providing $7,000 in commercial compensation for businesses that lost power.

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