New York Small Businesses Impacted By Coronavirus Can Now Apply for SBA Disaster Loans Due to Legislation Congresswoman Meng Helped Secure in First COVID-19 Relief Package
Mar 20, 2020
QUEENS, NY – U.S. Rep. Grace Meng (D-Queens), a member of the House Appropriations Committee, the panel responsible for funding all federal agencies and programs, announced today that New York small businesses that have suffered economic losses due to the coronavirus can now apply for disaster loans provided through the U.S. Small Business Administration (SBA).
SBA’s ability to provide these loans is based on a measure that Meng, and Reps. Nydia Velázquez (D-NY) and Judy Chu (D-CA) helped pass into law. The provision was part of the recently enacted coronavirus spending package that allocated $8.3 billion in federal funds to address the outbreak.
The loans became available in New York after the SBA approved New York State’s disaster declaration yesterday. This means that small businesses in all counties throughout New York State can begin applying for these Economic Injury Disaster Loans.
“The outbreak of COVID-19 has wreaked havoc on small businesses, and I’m thankful that establishments in Queens and across New York can now access the financial resources that they desperately need,” said Meng. “Small businesses play an integral role in our economy and throughout our communities. Our government must continue to be there for them during this difficult and uncertain period, and I urge all impacted businesses to take advantage of this critical assistance. As Congress works on a third relief package for families, I will continue to advocate for and support policies that help small businesses during this time of need.”
The SBA’s loan program provides working capital loans of up to $2 million to help overcome the temporary loss of revenue. Those that receive a loan can use the funds to pay fixed debts, payroll, accounts payable, or other bills that cannot be paid because of the COVID-19 outbreak.
Once a borrower submits an application, approval timelines depend on volume. Typical timeline for approval is 2-3 weeks and disbursement can take up to 5 days. Borrowers are assigned individual loan officers for servicing of the loan.
Small businesses seeking SBA disaster loan relief are first encouraged to contact a representative from the New York Small Business Development Center (SBDC). There are over 22 campus-based centers and outreach offices across New York to assist clients with the loan application. For businesses located in Queens, please email the Queens College SBDC at firstname.lastname@example.org, LaGuardia Community College SBDC at email@example.com, or York College SBDC at firstname.lastname@example.org for assistance.
Entrepreneurs can also apply for disaster assistance, by clicking here. For information on SBA disaster loans for New York, click here. For additional information, borrowers should contact the SBA Disaster Assistance customer service center by calling 1-800-659-2955 or emailing email@example.com.
Those that require immediate assistance from Congresswoman Meng’s office, can call 718-358-MENG or email at NY06casework@mail.house.gov.