Small businesses in the path of Hurricane Ida that have suffered damage may be eligible for grants, loans, and financial aid. The key is to apply as soon as possible so that you can get that money to get your business up and running.
Disaster relief available to businesses in the path of Hurricane Ida
The path of devastation left by Hurricane Ida began on August 29, when it made landfall in Louisiana. Then it moved to Mississippi before heading northeast. There it wreaked havoc in New York and New Jersey as well as some counties in Connecticut, Delaware and Pennsylvania.
When parts of Eda-affected states receive disaster declarations, federal funds can begin to flow in to help. So far, Louisiana, New York, and New Jersey have received this designation. This will allow individuals and businesses to start receiving federal assistance.
For small businesses, this means Small Business Administration (SBA) loans through Economic Injury Disaster Loans (EIDL). In some cases, the CDFI Fund can also help disadvantaged communities.
Louisiana Businesses Eligible for IDA Relief
Advertising in Louisiana covers the following locations:
Ascension, Assumption, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, Parishs of Saint Martin, Saint Mary, Saint Tammany, Tangibahua, Tribune, Washington, West Baton Rouge, and West Feliciana. These parishes are eligible for SBA physical and economic disaster loans.
New York declares a state of emergency after Ida
Advertising in New York covers the Bronx, Kings, Queens, Richmond and Westchester counties. These locations are eligible for SBA physical and economic disaster loans.
New Jersey Businesses Eligible for IDA Relief
The New Jersey disaster declaration covers Bergen, Gloucester, Hunterdon, Middlesex, Passaic and Somerset counties. These counties are eligible for SBA physical and economic disaster loans.
New Jersey has also created a $10 million grant program for small businesses affected by IDA. The grant program allows small businesses and nonprofits with up to 50 employees to apply for grants ranging from $1,000 to $5,000. Owners and home-based businesses are not eligible for this grant program.
The following small businesses and most private nonprofit organizations in the following neighboring counties are eligible to apply only for SBA Disaster Economic Loans.
- Connecticut – Fairfield
- Delaware – Bucks, New Castle
- New Jersey – Atlantic, Camden, Cumberland, Essex, Hudson, Mercer, Monmouth, Morris, Salem, Sussex, Union, Warren
- New York – Nassau, Putnam, Orange, Rockland
- Pennsylvania – Philadelphia
SBA contacts businesses affected by Ida
As a small business or corporation of any size for that matter, SBA offers loans of up to $2 million through EIDL. This money is intended to repair or replace machinery, equipment, inventory and other business assets as well as property that has been damaged or destroyed. Furthermore, the SBA can also lend more money to help with the cost of improving, protecting, preventing, and reducing the same catastrophe from happening in the future. Corporate interest rates can be as high as 2.855% and 2% for private nonprofits.
For homeowners, disaster loans of up to $200,000 are available to repair or replace damaged or destroyed property. In addition, homeowners and renters are entitled to up to $40,000 to repair or replace damaged or destroyed personal property. For these loans, interest rates are 1.563% with terms up to 30 years.
When applying for loans, you must first contact the Federal Emergency Management Agency at www.disasterassistance.gov. You can apply online as well as obtain additional information for disaster assistance and download applications at https://disasterloanassistance.sba.gov/.
If you need to speak to an SBA Customer Service Center for information about SBA disaster assistance, you can call (800) 659-2955 or email [email protected] Individuals who are deaf or hard of hearing can call (800) 877-8339.
Completed applications should be mailed to the US Small Business Administration, Processing and Exchange Center, 14925 Kingsport Road, Fort Worth, TX 76155.
You can also visit the US Chamber of Commerce’s Business Disaster Assistance Office for small business assistance.
Here are links to resources for the countries hardest hit by Hurricane Ida:
Sadly, there seem to be some bags of evil scum taking advantage of people when they are frustrated with committing scams during these trying times.
Scams usually involve getting some grant money quickly; However, they will tell you that you have to pay a processing fee. Remember that you do not have to pay for government grants and a legitimate government agency will not ask you to pay an advanced processing fee.
If you get a call telling you to get a cash card for any amount to pay the scholarship processing fee, hang up. If the agency the scammer claims to represent exists, contact them and find out for yourself.