The U.S. Small Business Administration will be offering low-interest federal disaster loans to small businesses suffering economic injury as a result of the Coronavirus.
The SBA will need to receive a request for Economic Injury Disaster Loan assistance from a state’s Governor in order to make the loans available, as provided by the “Coronavirus Preparedness and Response Supplemental Appropriations Act”, recently signed by the President.
Once a declaration is made for designated areas within a state, information about the application process will be available on the SBA website: SBA.gov/disaster.
These Economic Injury Disaster Loans will offer up to $2 million in assistance, and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The 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. The interest rate is 3.75% for small businesses, and 2.75% for non-profits. Long-term repayment plans – up to a maximum of 30 years – should keep the payments affordable, and will be determined on a case-by-case basis, based upon a borrower’s ability to repay.