SBA Offers Relief to New Jersey Businesses and Private Nonprofits Affected by 12-Alarm Warehouse Fire

WASHINGTON - The U.S. Small Business Administration announced the availability of low-interest federal disaster loans to small businesses and private nonprofit organizations in New Jersey to offset economic losses caused by a 12-Alarm Warehouse Fire occurring May 3 - 14. The SBA issued a disaster declaration in response to a request received from Gov. Mikie Sherrill on June 10.

The disaster declaration covers the New Jersey primary county of Essex, the contiguous counties of Bergen, Hudson, Morris, Passaic, and Union, which are eligible for Economic Injury Disaster Loans from the SBA.

Under this declaration, the SBA's EIDL program is available to eligible small businesses, small agricultural cooperatives, nurseries, and PNPs - including faith-based organizations - with financial losses directly related to this disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.

EIDLs are available for working capital needs caused by the disaster and are available even if the small business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills which could not be paid due to the disaster.

 "SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery," said Chris Stallings, Associate Administrator of the Office of Disaster Recovery and Resilience at the SBA. "These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."

The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.625% for PNPs, with terms of up to 30 years. Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant's financial condition.

Opened on Tuesday, June 16 SBA customer service representatives will be on hand at the SBA Business Recovery Center in primary county of Essex to answer questions about SBA's disaster loan program, explain the application process and help individuals complete their application. Walk-ins are welcome, and you can schedule an in-person appointment in advance at appointment.sba.gov.

The BRC hours of operation are listed below:

Essex County

Business Recovery Center

Belleville Public Library

221 Washington Ave.

Belleville, NJ 07109

Opened at 10 a.m. on Tuesday, June 16

Monday - Friday, 9 a.m. - 5 p.m.

Saturday, 9 a.m. - 1 p.m.

Friday, June 19, closed in observance of the Juneteenth holiday

Closes permanently at noon, Saturday, June 27

To apply online visit sba.gov/disaster. Applicants may also call SBA's Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

The filing deadline to return economic injury application is March 12, 2027.

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About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit https://www.sba.gov.