Loans Available at 1 Percent for Small Business Affected by Sandy

Small businesses affected by Superstorm Sandy can apply for up to $25,000 in loans to pay for costs related to replacing or repairing facilities and equipment. The money can also be used as working capital needed to restart business operations.

New York’s Governor Mario Cuomo announced that eligible businesses will receive loans that will be interest and payment-free for the first six months – and then at a interest rate of one percent for the following two years. The program was developed in partnership by Cuomo, the New York Bankers Association (NYBA) and the New York Business Development Corporation (NYBDC).

These loans should come as a welcome help to business owners who were loathe to take the FEMA disaster relief loans which came at 4%, a great rate but still too high a monthly payment for small business owners whose finances were already stretched thin before the disaster.

“New York’s banks are stepping up to help our state’s small businesses rebuild and restart in the aftermath of Hurricane Sandy,” Governor Cuomo said in a press release. “This loan program will help those businesses who were hit hardest by the storm get the resources they need to repair immediately, allowing them to continue to provide jobs to our communities and strength to our economy.”

The governor then went on to thank the NYBA for helping put together this special loan.

Michael P. Smith, President and CEO of the NYBA said the loans would help neighborhoods recover by first helping the businesses within.

“We are eager to help in this critical effort so that New York’s small business owners can get back to work, and back to providing good and services to their communities,” he continued.

The emergency loan program is for independently owned and operated businesses that have fewer than 100 employees and are located in the counties designated as disaster area: Orange, Putnam, Rockland, Sullivan, Ulster, Westchester, Nassau, Suffolk and the five boroughs of New York City.

To apply, businesses should visit www.esd.ny.gov or call 1-855-NYS-SANDY.