The New Jersey district office of the U.S. Small Business Administration announced Thursday that the federal agency has approved over a 120,000 Economic Injury Disaster Loans for $7 billion to Garden State small business owners and nonprofits.
The good news: The agency still is accepting applications.
According to New Jersey District Director Al Titone, the agency is taking EIDL applications from all qualified small businesses, including agricultural businesses, and private nonprofit organizations.
The EIDL application is available 24/7 online via a secure SBA website that can be accessed by the public. Small business owners and nonprofit organizations interested in applying for the EIDL program can do so by applying online here.
“Small business owners have the opportunity to apply and receive up to six months of working capital,” Titone said. “Loans for small businesses and nonprofits should consider these low-interest, long-term loans that can help them maintain operations during this unprecedented public health situation.
“Small businesses will receive a fixed 3.75% interest rate on an EIDL, while nonprofits are locked into a 2.75% APR — 30-year terms are available with no pre-payment penalties as well. What’s more, small business owners also have the option of deferring their first payment for one year.”
New Jersey companies have been taking advantage of the program.
According to SBA Regional Administrator Steve Bulger, who oversees agency programs and services for New Jersey and other locations, New Jersey ranked seventh among states for EIDL loans.
The states ahead of New Jersey were the four largest in the country — California, Texas, Florida and New York — as well as Georgia and Illinois. New Jersey is the 11th-largest state, based on population.
Bulger said the loans were intended for those who experienced a temporary loss of revenue due to the ongoing COVID-19 public health situation.
“SBA’s EIDL program has provided over 3.5 million small business owners nationwide with $192 billion in loans,” he said. “The SBA Office of Disaster Assistance is reaching all sectors of small businesses, including agricultural businesses and nonprofit organizations, by providing them a lifeline to help meet their financial obligations and operating expenses that could have been met had COVID-19 not occurred.”
Bulger said EIDL loans cannot be utilized for the same purposes as Paycheck Protection Program funding or other public assistance programs
“Small businesses throughout New Jersey are using Economic Injury Disaster Loans for working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, fixed debt payments,” he said.
Titone said he’s happy the SBA has been able to make a difference.
“There is a lot more work to do, but when you combine the total EIDL and Paycheck Protection Program loans together, small business owners and nonprofits throughout New Jersey have received over 277,000 loans for $25 billion,” he said. “I would certainly categorize that as significant economic impact spearheaded by the federal government, putting our small business community on the road to recovery.”