Some businesses eligible for loans to recover from Ida

Small businesses in Connecticut are eligible for federal disaster loans for up to $2 million to recoup financial losses from the remnants of Hurricane Ida, the Small Business Administration announced last week.

The announcement covers primarily businesses in Middlesex and New London counties. Hartford, New Haven, Tolland and Windham counties are also eligible. Suffolk County in New York and Kent and Washington counties in Rhode Island are also eligible, according to a news release.

Small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations are eligible. The working capital loans are for economic losses resulting from remnants of Hurricane Ida from Sept. 1 to 3.

The storm caused downed trees and electrical wires as well as flooding in Connecticut during that time.

Tony Sheridan, president and chief executive officer of the Chamber of Commerce of Eastern Connecticut, said the loans were needed, particularly for businesses that have experienced repeated losses through the course of the pandemic.

“The hurricane is kind of an insult on top of injury,” Sheridan said. “It just makes everything harder.”

He said the service industry had been particularly affected. In the portion of the state Sheridan’s group covers, much of the industry relies on business from tourists, and between COVID-19 and the hurricane, there were far fewer tourists in addition to other losses, he said.

The loans can be used to pay fixed debts, payroll, accounts payable or other bills that businesses could have paid if the hurricane hadn’t occurred.

They’re not intended to cover losses in sales, according to the news release.

U.S. Department of Agriculture Secretary Tom Vilsack announced in December that an agriculture disaster declaration had been approved for the six Connecticut counties. Middlesex and New London counties were named as the primary counties, while the other four were contiguous.

“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to eligible entities, affected by the same disaster,” Kem Fleming, director of SBA’s Field Operations Center East, said in Friday’s news release.

Interest rates for the loans are 2.86 percent for small businesses and 2 percent for nonprofits, with terms up to 30 years, according to the release.

Sheridan said his group plans to start publicizing the loans next week.

The Middlesex County Chamber of Commerce is also ready to assist in getting the word out and to help businesses with their applications, according to a statement from Vice President Jeff Pugliese.

“The Middlesex County Chamber of Commerce applauds SBA for helping the business community in our region recover from the economic impact of the remnants of Hurricane Ida,” the statement read in part.

More information and applications are available online. Applicants should apply under the declaration #17307, rather than for the COVID-19 incident.

Applications are due Aug. 22.