Homeowners, renters, businesses and nonprofit organizations in six Western New York counties can now seek federal recovery loans after destructive flash flooding on September 3.
SBA disaster loans are now available to eligible residents and organizations in Erie County and five neighboring counties after severe flooding damaged homes and businesses in Buffalo and nearby communities. Gov. Kathy Hochul announced Tuesday that the U.S. Small Business Administration approved a Physical Disaster Declaration covering Erie, Niagara, Genesee, Wyoming, Cattaraugus and Chautauqua counties.
The declaration does not create an automatic payment or grant. It allows people and organizations with qualifying losses to apply for low-interest federal loans. Physical-damage applications are due December 18, 2026. Applications for Economic Injury Disaster Loans are due July 19, 2027.
Who can apply for SBA disaster loans
The declaration covers homeowners, renters, businesses of all sizes and most private nonprofit organizations in the six eligible counties. Applicants must show that their loss is connected to the September 3 flooding and was not fully covered by insurance or another source.
The governor’s office listed four main forms of assistance:
- Homeowners may apply for up to $500,000 to repair or replace a damaged primary residence.
- Homeowners and renters may apply for up to $100,000 to repair or replace personal property, including clothing, furniture, appliances and vehicles.
- Businesses and most private nonprofit organizations may apply for up to $2 million to repair or replace real estate, equipment, machinery, inventory and other damaged property.
- Eligible small businesses and nonprofit organizations may seek Economic Injury Disaster Loans for working capital needed until normal operations resume.
A business may qualify for both a physical-disaster loan and an economic-injury loan, but the combined amount is generally limited to $2 million. The SBA determines the approved amount after reviewing the damage, insurance coverage, credit and ability to repay.
This is a loan program, not a direct grant
The word “assistance” can cause confusion after a disaster. These SBA programs involve debt that normally must be repaid. Applicants should compare the proposed loan payment with their household or business budget before accepting an offer.
According to the SBA, repayment terms can extend as long as 30 years, depending on the borrower’s ability to repay. The agency says the first payment is deferred for 12 months and interest does not accrue during that first year. For applicants who cannot obtain credit elsewhere, fixed rates generally cannot exceed 4 percent. A higher ceiling may apply to businesses that can obtain credit elsewhere.
There are no prepayment penalties or fees listed for these disaster loans. Collateral may be required for larger loans, but the SBA says it will not reject an otherwise eligible application simply because the applicant lacks enough collateral.
Borrowers should read the promissory note, interest rate, payment schedule and collateral terms carefully. A long repayment period can lower the monthly payment, but it may increase the total interest paid over the life of the loan.
What happened during the September 3 flooding
Intense rain overwhelmed parts of Buffalo on September 3, with especially serious damage reported along Hertel Avenue and in North Buffalo. The Buffalo Sewer Authority later described the event as an exceptionally rare rainstorm. Local reporting based on the authority’s review said about three inches of rain fell in two hours, flooding basements, trapping vehicles and forcing water from some manholes.
Residents and businesses documented damaged furniture, equipment, inventory and building systems. Buffalo created a September flooding resource page and asked affected property owners to preserve repair bills, photographs and other records.
Hochul said New Yorkers deserve “every dollar possible” to help rebuild. State Homeland Security Commissioner Terry O’Leary credited county emergency managers and federal partners for documenting the losses and obtaining the declaration.
State Sen. April Baskin said businesses along Hertel Avenue faced repair and recovery costs that threatened important neighborhood services. Erie County Executive Mark Poloncarz and Buffalo Mayor Sean Ryan also welcomed the federal assistance. Ryan said the city began documenting damage and helping residents immediately after the storm. Buffalo Common Council President Joel Feroleto called the declaration a financial lifeline for affected residents and businesses.
How to apply and what records to gather
Applications can be submitted through the official MySBA Loan Portal. Applicants can also contact the SBA Disaster Assistance Customer Service Center at 1-800-659-2955 or email disastercustomerservice@sba.gov. People who are deaf, hard of hearing or have a speech disability can dial 711 for relay service.
A practical application checklist
- Photograph and list every loss. Include damaged walls, floors, utilities, furniture, vehicles, equipment, inventory and personal property.
- Keep receipts and estimates. Save cleanup bills, contractor estimates, temporary repair costs and records of items already replaced.
- Contact the insurer. The SBA generally considers insurance proceeds when determining an eligible loan amount.
- Gather financial records. Applicants may need identification, ownership or lease information, tax records, income documents and business financial statements.
- Use only official channels. Start at SBA.gov or the MySBA portal. Be cautious about anyone demanding a fee to guarantee approval.
- Apply before the deadline. Do not wait for every repair to be completed before beginning the application.
People who lost important paperwork can also use the Phoenix New York document-replacement guide to begin replacing identification and other records. Applicants should still confirm the exact documents needed with the SBA.
Economic injury assistance works differently
A business does not need physical property damage to experience serious economic harm. A prolonged closure, blocked customer access or interruption in normal operations can create bills that continue even when revenue falls.
Economic Injury Disaster Loans are intended to help eligible small businesses, small agricultural cooperatives, qualifying aquaculture businesses and most private nonprofit organizations meet ordinary obligations they could have paid if the disaster had not occurred. The funds can cover working-capital needs such as rent, utilities, health benefits and fixed debt payments.
The program does not replace lost profits. It also cannot generally be used to expand a business, buy new fixed assets, pay dividends or repair physical damage. Those limits are why applicants should identify whether they need a physical-disaster loan, an economic-injury loan or both.
Mitigation money may help reduce the next loss
The SBA says approved physical-disaster borrowers may be eligible for an increase of up to 20 percent of verified damage to pay for measures that reduce future risk. Examples include adding a sump pump, improving drainage, elevating equipment or converting a vulnerable lowest floor to a use that is easier to protect.
Mitigation work must be approved as part of the loan. Property owners should not assume every improvement will qualify, and local permits or building-code requirements may still apply.
The option matters beyond Western New York. Repeated heavy-rain events have exposed drainage problems in communities across the state, including concerns described in the Phoenix report on Utica flooding and drainage fixes. Recovery money can repair damage, but reducing the next loss often requires attention to sewers, grading, backup valves and other resilience measures.
Why this matters to Mohawk Valley readers
Oneida, Herkimer and Madison counties are not included in this declaration, so Mohawk Valley residents cannot apply based on this September 3 event. The announcement still offers a useful reminder about how federal aid works after a localized disaster.
An SBA declaration may cover a damaged county and contiguous counties even when a broader presidential disaster declaration is not available. That can open a recovery path for households and businesses, but it still requires documentation, an application and repayment.
Mohawk Valley homeowners and business owners can prepare now by reviewing insurance coverage, photographing valuable property, keeping important records backed up and knowing how to document damage after a storm. New Yorkers can also receive emergency alerts by texting their county or New York City borough name to 333111.
Deadlines and official contacts
- Physical property loan deadline: December 18, 2026
- Economic injury loan deadline: July 19, 2027
- Apply: MySBA Loan Portal
- Phone: 1-800-659-2955
- Email: disastercustomerservice@sba.gov
- Relay service: 711
The complete declaration announcement is available from the Governor’s Office. Program rules and current terms are available on the SBA disaster assistance page.
If this information could help a Western New York resident, renter, business owner or nonprofit, share it before the December 18 physical-damage deadline.
