The U.S. Small Business Administration (SBA) recently announced a significant opportunity for businesses and nonprofits in New York affected by severe storms and flooding that occurred on June 22, 2025. The SBA has established a disaster declaration following a request from Governor Kathy Hochul, granting access to low-interest federal disaster loans. This initiative aims to assist local businesses and communities in their recovery efforts.
Small businesses and private nonprofits within the counties of Chenango, Cortland, Madison, Oneida, Onondaga, Oswego, and Otsego can apply for both physical damage loans and Economic Injury Disaster Loans (EIDLs) tailored to meet their specific needs. For businesses facing damage to real estate, machinery, or inventory, loans up to $2 million are now available to facilitate repairs and replacements. This financial support can be crucial for maintaining operations and safeguarding jobs.
Furthermore, assistance extends beyond businesses. Homeowners and renters can secure loans of up to $100,000 to repair or replace personal property, including furniture and appliances, with homeowners eligible for up to $500,000 to rehabilitate their residences. This comprehensive support is designed to foster community resilience and recovery.
In line with prudent financial strategies, applicants may also qualify for a loan increase of up to 20% to enhance property resilience against future risks. “One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage,” noted Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. This forward-thinking strategy encourages businesses and homeowners to invest in mitigation measures that enhance their readiness for future severe weather events.
Small businesses and agricultural cooperatives experiencing financial hardships due to the storm can utilize the EIDL program, which proves invaluable even to firms that did not incur physical damage. This financial aid can cover operational costs such as payroll, fixed debts, or other essential expenses disrupted by the disaster.
Interest rates for the disaster loans are structured to be manageable: small business loans carry rates as low as 4%, while private nonprofits receive rates of 3.625%, and homeowners and renters see rates starting at 2.813%. Notably, repayment does not begin until 12 months after the first disbursement of funds, easing immediate financial pressures on borrowers.
To assist individuals in navigating this process, SBA customer service representatives will be available at the Disaster Loan Outreach Center (DLOC) in Madison County starting August 23. This center provides a vital resource for businesses and residents seeking guidance on the application process and loan options. Walk-ins are welcome, although scheduling an appointment may streamline assistance.
Operating hours for the DLOC are Monday through Friday from 8:30 a.m. to 5 p.m., and Saturdays from 10 a.m. to 2 p.m., with a temporary closure for Labor Day and a final closing on September 5. Attendees are encouraged to engage with advisors to clarify the necessary steps for applying and understanding the full scope of available aid.
While applying for these loans, disaster survivors should be proactive and not wait for insurance settlements to proceed with their applications. Should a property owner’s insurance coverage be uncertain, they can still apply for the full damage amount up to the SBA’s loan limits, provided that any insurance payouts are subsequently applied to their loan obligations.
The deadlines for application submissions are critical: October 20, 2025, marks the last date for physical property damage loan applications, while economic injury applications must be submitted by May 20, 2026. The timeline necessitates prompt action from potential borrowers wishing to take advantage of this disaster recovery aid.
As small business owners assess this opportunity, the SBA’s disaster loan program offers not just immediate relief but also a pathway toward proactive risk management and infrastructure resilience. The assistance underscores a robust commitment to empowering local enterprises at a time when support is paramount.
For those interested, more information can be found directly through the SBA’s resources online at sba.gov/disaster or by reaching out to the SBA’s Customer Service Center.
The integration of recovery efforts within the scope of long-term business planning may significantly contribute to the survival and sustainability of small businesses in New York, fostering greater community resilience.
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