SBA offers disaster relief to New Jersey small businesses and private nonprofits affected by sinkholes on I-80
Low interest disaster loans now available
NEW JERSEY – The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit (PNP) organizations affected by sinkholes on Interstate 80 that occurred on Dec. 26, 2024. The SBA issued the administrative declaration for an economic injury disaster on April 2.
The declaration covers Morris County, as well as the adjacent counties of Essex, Hunterdon, Passaic, Somerset, Sussex, Union, and Warren, which are eligible for Economic Injury Disaster Loans (EIDL) from the SBA.
EIDLs are intended for working capital needs caused by the disaster and are available even if the small business or PNP did not suffer any physical damage. They may be used to pay fixed debts, payroll, accounts payable, and other bills that remain unpaid 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 4.00% for small businesses and 3.625% for PNPs, with terms up to 30 years. Interest does not begin to 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.
Beginning Tuesday, April 8th, SBA customer service representatives will be available at the SBA Business Recovery Center (BRC) in Morris County to answer questions about SBA’s disaster loan program, explain the application process, and help individuals complete their applications. Walk-ins are accepted, but you can schedule an in-person appointment in advance at appointment.sba.gov.
The Business Recovery Center (BRC) is located at the Wharton Municipal Building, 10 Robert Street, Wharton, NJ, and will open on Tuesday, April 8th, from 10:30 a.m. to 5:00 p.m. The center’s regular hours will be Monday through Friday, 8:30 a.m. to 5:00 p.m., with Saturday hours from 10:00 a.m. to 2:00 p.m. It will be closed on Sundays.
Disaster survivors should not wait to settle with their insurance company before applying for a disaster loan. If a survivor does not know how much of their loss will be covered by insurance or other sources, the SBA can provide a low-interest disaster loan for the total loss up to its loan limits, provided the borrower agrees to use insurance proceeds to reduce or repay the loan.
To apply on line, visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov 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 applications is Jan. 2, 2026.
