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SBA outlines disaster loans for businesses hit by February blizzard
Summary
A Small Business Administration official told Westerly councilors and business owners about Economic Injury Disaster Loans (EIDL) up to $2 million, low fixed interest rates for businesses and nonprofits, and application steps; SBA will follow up with local loan counts.
A representative of the U.S. Small Business Administration briefed the Westerly Town Council and the public on July 13 about low-interest Economic Injury Disaster Loans for businesses and nonprofits that suffered economic loss from the February snowstorm.
Monica Miles, substituting for Elizabeth Canfield of the SBA’s field operations, said businesses and most private nonprofits that can demonstrate economic injury from the Feb. 22–24 storm — even without physical damage — may apply for EIDL. Loan terms commonly run up to 30 years; the SBA representative said interest rates are fixed at about 4% for businesses and 3.625% for nonprofits and that interest does not accrue during the first year. The SBA has a maximum standard figure of $2,000,000 for economic injury loans but can consider higher amounts in extraordinary cases.
Miles described typical documentation (identification, Social Security numbers, employer identification numbers, recent tax returns) and said there is no application fee for the loan. She said the SBA sometimes offers assistance through local small-business development centers and noted applicants could request smaller loan amounts than the maximum the SBA initially offers. She provided the local SBA phone number and online resources (sba.gov/disaster and lending.sba.gov) and offered to email the council with information about how many local applicants have applied.
Councilors asked whether loans could be paid off early without penalty (Miles: no penalty), how the SBA pursues collection on defaults (outlined general collection processes), and whether nonprofits are an intended part of the program (Miles: yes; nonprofits qualify and often receive lower rates). The presentation closed with contact details and information about relay access for people who are hearing- or speech-impaired.
The council thanked the SBA representative and encouraged affected businesses and nonprofits to contact the SBA for application assistance and follow-up.
