When it comes to disaster loans for New Jersey, businesses operating in the state of New Jersey have already received $684 million as federal loans to rebuild and recover from superstorm Sandy. SBA has been proactive in making loans available to businesses following Sandy. SBA, states that, 9,500 loans have been given to businesses till March 20th.
Out of the 9,500 loans, 9 out of every ten loan went to homeowners and 658 went to businesses. Small business owners and homeowners could find loans ranging from $400 to $ 2 million. The SBA has successfully given out loans to every county that is Sandy struck. ‘Ocean’ and ‘Monmouth’ are the hardest hit counties and so obtained most of loans. Some 4,347 loans worth $333 million have been released to businesses and entrepreneurs settled in Ocean County. And Monmouth, on the other hand, could get 2,246 loans valued at $160 million.
Sea Bright is located south of Sandy Hook. This is a bare strip of barrier island that suffered major damage due to Superstorm Sandy. t ‘Rozinante, Inc.’ – a business establishment that suffered major damages could find the maximum of SBA disaster loans that is $2 million.
It is generally known that when disaster of any degree strikes, homeowners in US, are eligible to receive $200,000 for real estate. Homeowners can also find funds up-to $40,000 meant for repair and replacement of personal property. As far as damaged and destroyed buildings and equipments are concerned, businesses are eligible to find up-to $2 million in loans. For improvement purposes, so as to avert damages from future disasters, businesses are eligible to find 20 percent more the value of loss due to a natural disaster. So, with corrections done and precautions taken it is possible to minimize the risk of property being damaged due to a future disaster.
Besides, Economic Injury Disaster Loans (EIDL), is also available to small businesses so as to help meet working capital needs of businesses. The SBA Sandy loan is available for up-to 30 years. Interest asked for the loan support can be as low as 1.7 percent for homeowners, 3 percent for non profit businesses and 4 percent for small businesses that are profit earning. There is also the Federal Emergency Management Agency (FEMA) that has been operating full-fledged to bring relief to the victims of Sandy storm. The agency provided individual assistance to assist those displaced by the storm and to make repair and replacement of damaged property. Database of FEMA has shown that the agency paid $367 million for repairs, replacement and to fulfill other needs.
SBA agency has extended its deadline to apply for assistance related to property damage up-to May 1st. The deadline to apply for Economic Injury Assistance is July 31st.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to