Severe storms can wreak havoc on small businesses, leaving owners scrambling to recover in the aftermath. Fortunately, the U.S. Small Business Administration (SBA) is stepping in to offer crucial assistance. Following recent disasters in New York, the SBA has announced a federal disaster loan program specifically designed to help businesses, nonprofit organizations, and residents affected by flooding and severe storms from June 22, 2025.

This initiative, prompted by a request from New York Governor Kathy Hochul, covers several counties, including Chenango, Cortland, and Onondaga, among others. Small business owners in these areas can now access low-interest loans to repair or replace damaged assets, providing a vital lifeline to those struggling to stay afloat after the storms.

Financial Recovery and Assistance

Small businesses and private nonprofits can apply for Business Physical Disaster Loans of up to $2 million. This funding can be used to address damages to real estate, machinery, equipment, and inventory. Additionally, homeowners and renters may apply for loans to cover personal property repairs and replacements—up to $100,000 for personal property and $500,000 for primary residences.

One standout feature of this program is the potential for applicants to seek an increase in their loan amounts for mitigation purposes. Borrowers can access an additional 20% of verified physical damage for investments aimed at reducing future storm risks. “One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage,” remarked Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA.

For small businesses experiencing economic hardship directly linked to the disaster—regardless of physical damage—the Economic Injury Disaster Loans (EIDL) provide essential working capital. This program is available to support payroll, fixed debts, and other bills that may have piled up as a result of the storm.

Interest Rates and Terms

Small business loans are offered at interest rates as low as 4%, while private nonprofits can access rates around 3.625%. Homeowners and renters benefit from the lowest rates, at 2.813%. Moreover, borrowers have the flexibility of up to 30 years to repay, with no interest accruing, and no payments due for the first year following the disbursement of funds. This structure allows small businesses to stabilize their operations without the immediate burden of repayments.

Navigating the Application Process

Starting August 23, a Disaster Loan Outreach Center (DLOC) will operate in Madison County, where business owners can receive assistance regarding the application process. SBA representatives will be present to answer questions and help applicants compile necessary documentation. The center will take walk-ins and also allows for appointments to ensure personalized assistance.

Located at 205 South Peterboro Street in Canastota, the DLOC will be open Monday through Saturday but will close on Sundays and the Labor Day holiday. Small business owners are encouraged to act quickly; the filing deadline for physical damage applications is October 20, 2025, and for economic injury applications, May 20, 2026.

Challenges to Consider

While this program offers significant relief, it’s crucial for small business owners to consider potential obstacles. Applications require thorough documentation of damages and may necessitate discussing losses with insurance providers. Some may find navigating the loan process daunting, particularly if they lack experience with federal assistance programs.

Additionally, the aid is not available to all sectors—agricultural producers, farmers, or ranchers are excluded from disaster loans unless they run small aquaculture operations. Owners in these industries should remain informed about alternate resources available to them.

As small businesses rebuild and regain stability, the SBA’s disaster loans can serve as a vital resource. By leveraging this opportunity, business owners position themselves not just to recover from recent setbacks, but to enhance their resilience against future storms. For further details and to apply online, interested parties can visit sba.gov/disaster. The road to recovery might be challenging, but with available financial resources, it is a pathway towards renewed strength and stability for small businesses in New York.

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This article, “SBA Offers Low-Interest Disaster Loans for New York Flood Recovery” was first published on Small Business Trends