The U.S. Small Business Administration announced certain private nonprofit organizations (PNPs) located in 18 counties throughout upstate New York that do not provide critical services of a governmental nature may be eligible to apply for low-interest rate disaster loans. These loans are available following a presidential disaster declaration for public assistance resulting from damages caused by severe storms, straight-line winds and flooding on Oct. 31 and Nov. 1, 2019.
PNPs located in the following 18 counties are eligible to apply: Chautauqua, Chenango, Cortland, Erie, Essex, Fulton, Hamilton, Herkimer, Jefferson, Lewis, Madison, Montgomery, Oneida, Oswego, Otsego, Saratoga, Tioga and Warren. Examples of eligible noncritical PNP organizations include, but are not limited to food kitchens, homeless shelters, museums, libraries, community centers, schools and colleges.
“President Trump recognized that people and nonprofits affected by wicked Halloween weather that affected almost 30% of New York state needed help. In addition to FEMA assistance, the SBA is offering low-interest loans to private nonprofits who do so much to help our communities 365 days of the year,” said SBA Atlantic Regional Administrator Steve Bulger, who oversees agency operations in New York, New Jersey, Puerto Rico and the U.S. Virgin Islands.
PNP organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. The interest rate is 2.75% with terms up to 30 years. Applicants may be eligible for a loan amount increase up to 20% of their physical damages, as verified by the SBA, for mitigation purposes.
Eligible mitigation improvements may include a safe room or storm shelter, sump pump, French drain or retaining wall to help protect property and occupants from future damage caused by a similar disaster.
The SBA also offers economic injury disaster loans to help meet working capital needs, such as ongoing operating expenses to PNP organizations. Economic injury disaster loan assistance is available regardless of whether the organization suffered any physical property damage.
PNP organizations are urged to contact their county’s emergency manager for information about their organization. The information will be submitted to FEMA to determine eligibility for a public assistance grant or whether the PNP should be referred to SBA for disaster loan assistance.
Applicants may apply online using the electronic loan application (ELA) via SBA’s secure website at DisasterLoan.sba.gov. Disaster loan information and application forms may also be obtained by calling the SBA’s customer service center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or sending an email to [email protected]. Loan applications can also be downloaded from www.sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The filing deadline to submit applications for physical property damage is Feb. 17, 2020. The deadline to submit economic injury applications is Sept. 21.