Post-Sandy Update: FEMA Extends Disaster Loan Deadline
Applications for Sandy-related physical property damage loans are now due Jan. 28 for New York small and mid-sized businesses, said Carol Chastang, a spokesperson for the Small Business Administration.
The original Dec. 31 deadline remains unchanged for New Jersey and Connecticut businessses, Chastang said.
At a news conference last Friday, members of the House of Representatives asked the Federal Emergency Management Agency--which runs the disaster loans program with the SBA--to change the Dec. 31 deadline to May 1, Newsday reported.
"These businesses are the backbone of our economy, and unless they get the help they need, many of them will close their doors," said Rep. Carolyn Maloney (D-Manhattan).
Applications for economic injury disaster loans--strictly for small businesses--are still due July 31, 2013 for all three states. Deadlines for Rhode Island businesses are Jan. 15 (physical property) and Aug. 14 (economic injury).
In the aftermath of Sandy's devastation on the East Coast, the SBA approved more than $150 million in loans to about 2,500 homeowners, renters and businesses in the four states, the SBA announced last Friday.
Once their applications are approved, businesses and private non-profits of all sizes can borrow up to $2 million in loans to repair or replace damaged property, Chastang said. Interest rates on disaster loans start at 4% for businesses with terms lasting up to 30 years.