Pennsylvania SBA Disaster Loan Deadline for Flood Damage Approaching

The U.S. Small Business Administration (SBA) is urging businesses and most private nonprofit organizations in Pennsylvania to apply for economic damage assistance due to the flash flooding and severe storms that hit Berks County on July 9, 2023. The deadline to apply for this assistance is June 28, 2024. The disaster declaration covers Berks County and the surrounding counties of Chester, Lancaster, Lebanon, Lehigh, Montgomery, and Schuylkill.

Businesses and organizations can apply for loans up to $2 million, with interest rates of 4% for small businesses and 2.375% for private nonprofit organizations. The loan terms can extend up to 30 years. The SBA sets the loan amounts and terms based on each applicant’s financial condition. Importantly, interest does not accrue, and payments are not due until twelve months from the date of the first loan disbursement.

Eligibility for the loans is based on the size of the applicant, type of activity, and financial resources. The working capital loans can be used to pay fixed debts, payroll, accounts payable, and other bills that could have been covered had the disaster not occurred. These loans are not intended to replace lost sales or profits.

Applicants can apply online and find additional disaster assistance information at SBA.gov/disaster. They can also contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information. For those who are deaf, hard of hearing, or have a speech disability, telecommunications relay services can be accessed by dialing 7-1-1.

The SBA offers Economic Injury Disaster Loans (EIDL) to help meet working capital needs caused by the disaster. These loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations. The assistance is provided regardless of whether the business suffered any physical property damage.

Submit completed loan applications to the SBA no later than June 28, 2024.

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This article, "Pennsylvania SBA Disaster Loan Deadline for Flood Damage Approaching" was first published on Small Business Trends