Federal Disaster Loans Open for Connecticut Flood Survivors in Three Counties

Connecticut residents and organizations affected by flash flooding on September 13 can now apply for low-interest disaster loans from the U.S. Small Business Administration (SBA), following a federal disaster declaration announced by Gov. Ned Lamont on October 6.

The SBA declaration identifies Fairfield County as the primary county and Litchfield and New Haven counties as contiguous counties. Eligible areas also include several contiguous counties in New York, according to the Federal Register notice. The declaration followed damage assessments by state, local and SBA officials.

The assistance is offered as loans that must be repaid; it is not a grant. The SBA says homeowners may borrow up to $500,000 to repair or replace a damaged primary residence. Homeowners and renters may qualify for up to $100,000 to repair or replace damaged personal property. Businesses may apply for up to $2 million for physical damage, while eligible businesses and private nonprofits may seek Economic Injury Disaster Loans of up to $2 million for working capital.

The Federal Register lists physical-damage interest rates of 3% for homeowners without credit available elsewhere and 6% for those with credit available elsewhere. Business rates are 4% and 8%, respectively. Economic injury loans for eligible businesses and small agricultural cooperatives are listed at 4%. The SBA determines eligibility and final loan terms; applicants should review the official declaration and SBA application information before applying.

The deadline to apply for physical-damage loans is December 1, 2026. The deadline for economic-injury loans is July 2, 2027. These programs address different needs: physical-damage loans cover eligible repair or replacement costs, while economic-injury loans provide working capital to eligible organizations facing disaster-related financial losses.

A temporary SBA Disaster Loan Outreach Center is scheduled to open Wednesday, October 7, at the Margaret E. Morton Government Center, 999 Broad Street, in Bridgeport. The center will help applicants with the loan process. Applications may also be submitted through the MySBA Loan Portal at lending.sba.gov. The SBA lists disastercustomerservice@sba.gov and 1-800-659-2955 for assistance.

People considering a loan should document their losses and review the repayment terms carefully. Applying does not guarantee approval; SBA reviews each application.