Disaster Loan Outreach Centers open on Long Island to aid businesses, residents impacted by August storm

Long Islanders who sustained damage during August’s devastating rainstorm can now get one-on-one assistance when applying for disaster loans.

The U.S. Small Business Administration has opened two Disaster Loan Outreach Centers in Suffolk County: One at the Rose Caracappa Senior Center in Mount Sinai and another in Head of the Harbor Village Hall in St. James, the agency announced.

Customer service representatives will assist business owners and residents with completing their disaster loan applications, accept documents for existing applications and provide updates on an application’s status, the agency said in a release.

Both are open Monday through Friday from 9 a.m. to 6 p.m., and Saturday from 10 a.m. to 2 p.m. They will remain in operation until 4 p.m. on Dec. 19, the SBA said.

The deadline for applications related to physical property damage is Jan. 27, while the deadline for "economic injury" applications is Aug. 26, the SBA said.

"We're urging people that are eligible for these loans to go ahead and follow through the application process," Jack Camp, a spokesman for the SBA, told Newsday Saturday.

Brookhaven Town Supervisor Dan Panico has said that about 50 houses were damaged in the Aug. 18-19 storm, which dropped about 10 inches of rain on the North Shore of Suffolk County. Suffolk has so far reported more than $40 million in damage, while Long Island officials said that amount may actually total $100 million.

President Joe Biden approved funding in October for local governments and nonprofits to rebuild infrastructure like roads, bridges and washed-out waterways. But Biden and the Federal Emergency Management Agency denied a request by Gov. Kathy Hochul for individual assistance for Long Islanders affected by the storm.

Hochul last month announced that Long Islanders whose homes or businesses were flooded can apply for low-interest federal loans.

Funds for the SBA's national disaster loan program ran out in October, amid increased demand from those impacted by Hurricane Helene, but SBA officials said they are continuing to accept and process applications so individuals and businesses are prepared to receive assistance when Congress appropriates more funding. 

"We've never been in this situation before ... We just have to wait until Congress makes the funds available, and then once they make the funds available, we will get the loans out as quickly as possible," Camp said.

Businesses and nonprofits can borrow up to $2 million for costs associated with "disaster-damaged or destroyed real estate, machinery and equipment, inventory and other business assets," the SBA said.

Homeowners are eligible for loans of up to $500,000 for real estate affected by the storm, and homeowners and renters can borrow up to $100,000 for personal property that was damaged or destroyed, the agency said.

“As we await the appeal on individual assistance from FEMA, I encourage residents affected by the catastrophic rainfall in August to utilize the resources available at the U.S. Small Business Administration’s Disaster Loan Outreach Centers," Panico said in a statement to Newsday.

To schedule an in-person appointment at one of the centers, visit bit.ly/3BlwLmZ. Walk-ins are also accepted.