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Pa. Small businesses eligible for low interest loans to cover storm damage
Stacy Wescoe//August 4, 2026
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Pa. Small businesses eligible for low interest loans to cover storm damage
Stacy Wescoe//August 4, 2026//
Small businesses, including those in Monroe, Carbon and Northampton Counties, will be able to receive financial assistance from the U.S. Small Business Administrative to help with any damages they incurred during severe storms that occurred on July 4.
Financial assistance became available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations after the SBA approved a request for funding from the state.
“Small businesses and non-profits are the backbone of many Pennsylvania communities,” said PEMA Director Randy Padfield. “The Shapiro Administration worked with the federal government to quickly open up access to low-interest loans to help businesses and other eligible organizations that experienced adverse financial impact due to loss of income, such as those that were closed and unable to operate for multiple days because of prolonged power outages as a result of the storms.”
The SBA’s Economic Injury Disaster Loan (EIDL) program provides loans of up to $2 million to help cover financial impacts resulting from income losses caused by the disaster.
Loans may be used to pay fixed debts, continue health care benefits, cover rent and utilities, and other operating expenses that could have been met had the disaster not occurred.
However, EIDL funds are not intended to replace lost sales or profits and cannot be used to expand facilities, purchase fixed assets, repair physical damage, refinance existing debt, or pay dividends or bonuses, or repay loans to stockholders or principals.
The SBA said it determines eligibility based on the applicant’s size, type of business activity, and financial resources.
Physical damage to property is not required to qualify.
Loan amounts and terms are determined by the SBA based on each applicant’s financial condition, with repayment terms of up to 30 years to help keep payments affordable.
Additional information is available on the SBA’s website.
