Some CT small businesses eligible for federal loans to recover from Hurricane Ida

Some CT small businesses eligible for federal loans to recover from Hurricane Ida
Written by Publishing Team

The Small Business Administration announced last week that small businesses in Connecticut are eligible for federal disaster loans of up to $2 million to offset financial losses from the remnants of Hurricane Ida.

The advertisement primarily covers businesses in the counties of Middlesex and New London. Hartford, New Haven, Tolland, and Windham counties are also eligible. According to a press release, Suffolk County in New York and Kent and Washington counties in Rhode Island also qualify.

Small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations are eligible. Working capital loans are for economic losses from the aftermath of Hurricane Ida from September 1 to 3 in 2021.

The storm caused trees and electrical wires to fall as well as flooding in Connecticut during that time.

The loans are essential, especially for businesses that have suffered repeated losses during the course of the pandemic, said Tony Sheridan, president and CEO of the Eastern Connecticut Chamber of Commerce.

“A tornado is kind of an insult in addition to an injury,” Sheridan said. “It makes everything more difficult.”

He said the service industry was particularly affected. In the part of the state covered by the Sheridan Group, much of the industry depends on business from tourists, he said, and between COVID-19 and the hurricane, there were far fewer tourists plus other losses.

Loans can be used to pay off fixed debt, payroll, accounts payable, or other bills that businesses would have paid had the hurricane not occurred.

It is not intended to cover losses in sales, according to the press release.

U.S. Agriculture Secretary Tom Vilsack announced in December that an agricultural disaster declaration had been approved for the six Connecticut counties. Middlesex and New London counties were named as the primary counties, while the other four counties were contiguous.

“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damage and loss to crops, the Small Business Administration issues a declaration to eligible entities, affected by the same disaster,” Kim Fleming, director of the SBA’s Eastern Field Operations Center, said in a news release Friday. .

The loan interest rates are 2.86% for small businesses and 2% for nonprofits, with terms up to 30 years, according to the statement.

Sheridan said his group plans to begin announcing the loans next week.

The Middlesex County Chamber of Commerce is also willing to help spread the word and assist businesses with their applications, according to a statement from Vice President Jeff Pugliese.

“The Middlesex County Chamber of Commerce applauds the SBA for helping the business community in our region recover from the economic impact of the aftermath of Hurricane Ida,” the statement read.

More information and applications are available online. Applicants must apply under Proclamation No. 17307, in lieu of the COVID-19 incident.

Applications are due by August 22nd.

About the author

Publishing Team

Leave a Comment