SBA opens disaster loans for New Jersey businesses after Essex warehouse fire

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SBA loans after NJ warehouse fire

Highlights

SBA opens Economic Injury Disaster Loans up to $2 million for Essex County and five contiguous New Jersey counties following Gov. Mikie Sherrill’s June 10 disaster request.
Eligible small businesses and nonprofits can access interest rates as low as 4% for businesses and 3.625% for nonprofits, with deferred interest and payments for 12 months.
EIDL funding supports working capital needs and ongoing operating expenses after the Essex warehouse fire, regardless of physical damage, aiding local economic recovery.

Loan terms and eligibility for affected counties

As reported by the U.S. Small Business Administration, the agency makes low-interest Economic Injury Disaster Loans available after issuing a disaster declaration in response to a June 10 request from Gov. Mikie Sherrill. The declaration covers Essex County as the primary county, along with Bergen, Hudson, Morris, Passaic and Union counties as contiguous areas eligible for assistance.

The program is open to eligible small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations, including faith-based groups, that sustain financial losses directly tied to the fire. The SBA does not provide these disaster loans to agricultural producers, farmers or ranchers, except for aquaculture enterprises.

EIDL funding supports working capital needs caused by the disaster and remains available even when a business or nonprofit does not suffer physical damage. Loan proceeds may be used for fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disruption.

The loan amount can reach $2 million, with interest rates as low as 4% for small businesses and 3.625% for private nonprofits, and terms of up to 30 years. Interest does not accrue, and payments are not due until 12 months after the first loan disbursement, while final loan amounts and terms depend on each applicant's financial condition.

Recovery support for Essex and surrounding economies

Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, says the loans help eligible businesses and private nonprofits cover operating expenses after a disaster and support local economic recovery. The assistance is designed to help organizations stay afloat while normal operations are restored in communities affected by the fire.

SBA customer service representatives are available at the SBA Business Recovery Center in Essex County to answer questions, explain the application process and assist with submissions. Walk-ins are accepted, and applicants can also schedule in-person appointments in advance at appointment.sba.gov.

Our earlier report on the U.S. government’s conditional $725 million loan commitment to Energy Fuels explained how Washington is using financing to expand domestic rare earth separation and metallization capacity. The move was framed as part of a broader push to strengthen critical-minerals supply chains and reduce reliance on China, with the funding contingent on due diligence requirements.

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