UCEDC Launches Last Round of Low-Interest Storm Recovery Loans

Funds to get businesses back on track in post-Sandy economy

On the eve of the second anniversary of Super Storm Sandy, UCEDC, a statewide nonprofit economic development corporation, has launched its last round of 2% working capital loans for small businesses impacted by the storm.  An additional $500,000 has been made available, with over $3 million already disbursed.

UCEDC’s storm recovery loan program features a 2% interest rate for five years on loans up to $25,000, with no collateral requirements and no application or processing fees.  Unlike federal and state disaster programs, UCEDC does not require physical damage to qualify for its loan.

Supported in part by Investors Bank and the Hurricane Sandy NJ Relief Fund, the loan program was created just weeks after Sandy hit in 2012. It was designed to provide quick and inexpensive access to working capital for businesses that suffered economic damage related to the storm.

“Not every business suffered serious physical damage from the storm, but virtually every business experienced  a loss in revenue, “ notes Maureen Tinen, UCEDC president.  “Maybe they were closed because there was no power, or their suppliers couldn’t get to them because roads were blocked, or customers simply stayed away as they dealt with their own storm issues.  The impact was the same: a drop in critical working capital that is almost impossible to completely make up.”

To date, UCEDC has loaned $3.244 million to over 100 small businesses in 14 counties throughout New Jersey.  Business owners have used the funds to retire more expensive debt, purchase  equipment and inventory,  renovate or expand their locations,  and support general working capital needs.

“We hope this round of funding will give businesses the boost they need to get out of their post-storm, no-growth rut, “ says Tinen.  “We encourage all businesses that lost revenue, whatever the amount, to talk with us about their situation.  Our loans may be the stimulus they need to really get back on track.”

Qualified applicants will have been profitable and in business for at least one year prior to the storm.  A personal credit score of at least 600 is required of all owners.

More details about the loan program can be found on UCEDC’s website – www.ucedc.com – or by calling 908-527-1166.