Low-Rate Loans Available for Small Biz Hit by Sandy

Small businesses affected by Superstorm Sandy can apply for up to $25,000 in loans to pay for the costs of replacing and repairing facilities or equipment or as working capital needed to restart business operations, Gov. Cuomo announced Wednesday.

Eligible businesses will receive loans that will be interest and payment-free for the first six months and then at 1-percent interest 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).

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

“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. I applaud the New York Bankers Association for providing relief to these businesses and joining the growing efforts by the private sector to help all New Yorkers recover.”

Michael P. Smith, President & CEO, New York Bankers Association said the loas would help small businesses recover, and in turn, rebuild neighborhoods.

"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 goods and services to their communities," said Smith, through the governor's office.

The emergency loan program will provide low-interest loans of up to $25,000 to small businesses in an expedited manner to help in the recovery efforts. The New York Business Development Corporation will manage and operate the loan program in coordination with Empire State Development (ESD).

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 areas: Orange, Putnam, Rockland, Sullivan, Ulster, Westchester, Nassau, Suffolk, and the five boroughs of New York City.

To be eligible to receive funding through the program, companies must have filed 2011 business tax returns and have experienced direct damage or economic hardship as a result of Sandy. Applications will be available within the week and businesses are expected to begin to receive funding five to seven days after submitting a complete application and the required documentation.