The U.S. Small Business Administration (SBA) recently granted an administrative disaster declaration for businesses impacted by the R.M. Palmer factory explosion in West Reading.
The agency’s Economic Injury Disaster Loan program provides low-interest loans of up to $2 million for small businesses, small agricultural cooperatives, and most private nonprofit organizations to help them meet financial obligations and operating expenses. The expenses must have otherwise been met had the disaster not occurred.
Repayment terms are tailed to each borrower’s financial capability.
Gov. Josh Shapiro wrote a letter to the SBA requesting disaster loan assistance, based on information provided by the Pennsylvania Emergency Management Agency. The agency conducted sample surveys of the affected businesses to determine the economic impact of the disaster.
“I was in West Reading meeting with local officials and community members immediately following the factory explosion, and I promised that my Administration would be there for the long-term to help them recover and rebuild,” Shapiro said. “That’s why we worked with the federal government to open up access to these low-interest loans, so that businesses can recoup unforeseen losses and ensure West Reading remains a vibrant city.”
At least five small businesses that sustained substantial economic injury in the disaster area will be eligible for assistance.