SBA opens disaster loan relief for New Jersey businesses after April freeze

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SBA disaster loans for NJ businesses

Highlights

The U.S. Small Business Administration opened low-interest Economic Injury Disaster Loans for small businesses and nonprofits in 21 New Jersey counties affected by the April 19–22 freeze.
Eligible applicants—including aquaculture enterprises and faith-based nonprofits—can borrow up to $2 million with interest rates of 4% for businesses and 3.625% for nonprofits, and deferred payments for 12 months.
The relief targets economic injury and working capital needs, serving as a liquidity backstop for local employers and nonprofits in the disaster-declared areas of New Jersey, Delaware, New York, and Pennsylvania.

Freeze relief program and eligibility

As reported by the U.S. Small Business Administration, the agency is making low-interest Economic Injury Disaster Loans available to eligible small businesses, small agricultural cooperatives and private nonprofit organizations affected by the freeze that occurs from April 19 to April 22.

The declaration covers 21 counties in New Jersey: Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union and Warren. It also extends to contiguous counties in Delaware, New York and Pennsylvania.

The program is designed to address economic injury rather than property damage. Loan proceeds may be used for working capital needs, including fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster.

Agricultural producers, farmers and ranchers are not eligible for these disaster loans, except for aquaculture enterprises. Faith-based organizations are included among eligible private nonprofit applicants.

Financing terms and regional implications

The loan amount can reach $2 million, with interest rates as low as 4% for small businesses and 3.625% for private nonprofit organizations. Terms can run as long as 30 years, while interest does not accrue and payments are not due until 12 months after the first loan disbursement.

The SBA says loan amounts and repayment terms are set according to each applicant's financial condition. Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, says the agency's assistance is intended to help communities recover after the agriculture secretary's disaster declaration.

The measure provides a liquidity backstop for affected local employers and nonprofits across New Jersey and neighboring counties that fall within the disaster area. Applications can be filed online through the SBA's disaster assistance portal, while additional information is available through the agency's customer service center and disaster assistance email channel.

Our earlier coverage of congressional scrutiny of SBA lending focused on a request for the agency to review lenders removed from the USDA’s OneRD loan guarantee program who still participate in the SBA’s 7(a) channel. We noted concerns that compliance problems in one federal guarantee program could signal broader risks for taxpayers, aligning with the SBA’s wider push to tighten underwriting standards and oversight to curb waste, fraud, and abuse.

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