Investors Bank has formed an alliance with UCEDC, a statewide, nonprofit economic development corporation, to provide low-interest loans to small businesses that suffered damages, revenue losses or business interruptions due to Superstorm Sandy. UCEDC received a grant from Investors that will be used to cover key portions of the loan program’s costs.
Beginning immediately, small firms can apply for low-cost Storm Recovery Loans of up to $25,000. The five-year, fixed-rate financing is available at an interest rate of two percent. UCEDC, which will lend the funds and manage the program, is waiving all collateral requirements and prepayment penalties, as well as loan application or processing fees.
To date, UCEDC has provided financing to companies from Cape May to Bergen County, helping businesses as diverse as a child care center, hair care salon, and an animal hospital. Qualified businesses have been in operation for at least two years and were profitable prior to the storm.
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For example, Mary Baker, owner of Baker Tax and Accounting in Linden, was among those assisted by the storm loan program. During Sandy, her business lost its external signage to high winds and its computer system and server were knocked out by a power outage. With tax season rapidly approaching, Ms. Baker had to get her business up and running as quickly as possible, and she also knew that her two employees, both single mothers, relied on their weekly paychecks.
Ms. Baker said, “I discovered that my insurance was going to cover just a fraction of the replacement costs, and I had to make my payroll. The storm recovery loan allowed me to rapidly restore our operations and helped cover the loss of revenue we suffered. And, the interest rate is so incredibly helpful.”
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More details about the storm recovery loan program are available at the UCEDC website, http://ucedc.com/content/storm-recovery-loan-program. Businesses owners may address their questions to one of UCECD’s loan officers at 908.527.1166.
