Across the country, there are approximately 27 million small businesses, accounting for 60-80% of all jobs. In 2012, countless small businesses across the New York and New Jersey area suffered greatly in the aftermath of Hurricane Sandy.
In fact, more than 23,000 businesses in New York city were impacted by Hurricane Sandy, affecting 245,000 employees who worked at these businesses.
And many of these businesses are still struggling to get back on their feet. After the hurricane, the number of businesses that withdrew from the application for a loan from the Small Business Administration (SBA) was at a high, with the rate of approval for these loans at a low 42%.
But now, the U.S. SBA has reopened the loan filing period for small businesses affected by Hurricane Sandy, extending it until December of 2016.
Business owners who have suffered physical damage or economic injury due to Hurrican Sandy, and who were forced to relocate in a declared disaster area, have the option of applying for two different kinds of disaster loans: businesses physical disaster loans, or economic injury disaster loans (EIDL).
Business physical disaster loans provide loans to businesses that are looking to repair or replace property damaged by disasters. This includes real estate, supplies, inventories, machinery and equipment.
The EIDL are working capital loans that allow small businesses, small agricultural cooperatives, and aquaculture businesses to meet their necessary financial obligations that were unable to be met because of Hurricane Sandy.
In order to apply for these loans, small businesses need to fit a total of three credit requirements. Firstly, the applicants must have an SBA acceptable credit history. Secondly, applicants must have an ability to repay the loans to SBA. Finally, for loans of $25,000, collateral is required. While the SBA will not decline a loan because of a lack of collateral, the SBA does require the small business in question to pledge whatever might be available.