The U.S. Small Business Administration (SBA) will provide small businesses impacted by coronavirus (COVID-19), up to $2 million in disaster assistance loans.
In a March 12 statement, SBA Administrator Jovita Carranza said, “Our agency will work directly with state governors to provide targeted, low-interest disaster recovery loans to small businesses that have been severely impacted by the situation.”
Carranza added that the SBA’s district offices and resource partners provide counseling for small businesses regarding “the most effective and customer-focused response possible during these times of uncertainty.”
The SBA is offering designated states and territories low-interest federal disaster loans, providing working capital to small businesses suffering substantial economic injury as a result of the coronavirus (COVID-19).
According to the Coronavirus Preparedness and Response Supplemental Appropriations Act recently signed by President Donald Trump, the SBA has the authority to issue an Economic Injury Disaster Loan declaration upon request from the governor. This makes loans available to small businesses and private, non-profit organizations in designated areas to help alleviate economic injury caused by the health crisis.
Once a declaration is made, information about the loan application process will be made available to all affected communities. Up to $2 million in assistance is available to help small businesses overcome the temporary loss of revenue they are experiencing. Loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
Interest rates for the loans are 2.75 for non-profits and 3.75 percent for small businesses without credit available elsewhere. Businesses with credit available elsewhere are not eligible. SBA offers loans with long-term repayments to keep payments affordable, up to 30 years. Terms are determined on a case-by-case basis, based on each borrower’s ability to repay.
For additional information, contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or email@example.com.