Small businesses in New York City that have suffered economic losses due to the coronavirus (COVID-19) pandemic can now apply for disaster loans provided through the U.S. Small Business Administration (SBA).
SBA’s ability to provide these loans is based on a measure that Congresswoman Grace Meng and Reps. Nydia Velazquez (D-NY) and Judy Chu (D-CA) helped pass into law. The provision was part of the recently enacted coronavirus spending package that allocated $8.3 billion in federal funds to address the outbreak.
The loans became available in New York after the SBA approved New York state’s disaster declaration on March 19. Small businesses in all counties throughout New York state can begin applying for the Economic Injury Disaster Loans.
Meng, a member of the House Appropriations Committee, the panel responsible for funding all federal agencies and programs, said she’s thankful that establishments in Queens and across New York can now access the financial resources that they desperately need.
“Small businesses play an integral role in our economy and throughout our communities. Our government must continue to be there for them during this difficult and uncertain period, and I urge all impacted businesses to take advantage of this critical assistance,” Meng said. “As Congress works on a third relief package for families, I will continue to advocate for and support policies that help small businesses during this time of need.”
The SBA’s loan program provides working capital loans of up to $2 million to help overcome the temporary loss of revenue. Those that receive a loan can use the funds to pay fixed debts, payroll, accounts payable or other bills that cannot be paid because of the coronavirus outbreak.
Once a borrower submits an application, approval timelines depend on volume. The typical timeline for approval is two to three weeks and disbursement can take up to five business days. Borrowers are assigned individual loan officers for servicing of the loan.
Small businesses seeking SBA disaster loan relief are first encouraged to contact a representative from the New York Small Business Development Center (SBDC). There are over 22 campus-based centers and outreach offices across New York to assist clients with the loan application.
Entrepreneurs can also apply for disaster assistance, by clicking here. For information on SBA disaster loans for New York, click here. For additional information, borrowers should contact the SBA Disaster Assistance customer service center by calling 1-800-659-2955 or emailing [email protected]
Those that require immediate assistance from Congresswoman Meng’s office, can call 718-358-MENG or email at [email protected]