HARTFORD, Conn — The U.S. Small Business Administration is extending a helping hand in Connecticut to small businesses, small agricultural cooperatives, private nonprofits and small businesses engaged in aquaculture that suffered losses due to the flooding on Aug. 18-19.
Operations that fall under those categories are eligible for working capital disaster loans. The SBA’s Economic Injury Disaster Loans offer funds for working capital needs necessitated by the disaster, even if the business did not experience physical damage.
“To serve the economic interests of the small business community, the SBA’s working capital loans have an extended application timeframe of nine months from the disaster declaration, which enables businesses to assess their needs. However, we urge businesses to act now,” Francisco Sánchez, associate administrator for the SBA’s Office of Disaster Recovery and Resilience, said.
RELATED: Attention Connecticut: 2 weeks left to apply for federal disaster assistance after August floods
SBA is partnering with local stakeholders and is holding webinars and workshops to reach businesses and nonprofits in disaster-declared areas.
The SBA disaster loans are available in Fairfield, Litchfield and New Haven counties, which are eligible for the SBA’s Physical or Economic Injury Disaster Loans.
According to a release from the SBA, small businesses and most private nonprofit organizations in Connecticut’s Hartford and Middlesex counties are eligible to apply only for SBA Economic Injury Disaster Loans.
Loans can reach up to $2 million with interest rates of 4% for small businesses and 3.25% for private nonprofits, with terms up to 30 years, the SBA says. The SBA determines eligibility by evaluating the size of the applicant, type of activity and its financial resources.
Loan amounts are established by the SBA and based on each applicant’s financial condition. The working capital loans can be used to pay fixed debts, payroll, accounts payable and other bills that would have been paid if the flooding did not occur.
Last month, it was announced that funds for the Disaster Loan Program have been fully expended. No new loans can be issued until Congress appropriates more funding, but the SBA says it is committed to supporting survivors of the flooding.
Applicants will continue to be accepted and processed to ensure individuals and businesses can receive assistance when funding becomes available, according to the SBA.
The SBA encourages applicants to submit their loan applications as soon as possible to be reviewed in anticipation of future funding.
The filing deadline to return applications for physical property damage is Nov. 19, while the deadline to return economic injury applications is June 20, 2025.
One can learn more and apply by clicking here. Applicants can also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for information about SBA disaster assistance.
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Dalton Zbierski is a digital content producer and writer at FOX61 News. He can be reached at dzbierski@FOX61.com.
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