SBA Offers Relief Featured

By Staff Writer March 17, 2020 674

The U.S. Small Business Administration is offering relief for businesses struggling with the effects of the coronavirus (COVID-19).

SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance for a small business. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The SBA is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of COVID-19. Upon a request received from a state’s or territory’s governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently enacted, an economic injury disaster loan declaration.

The declaration’s issuance makes loans available to small businesses and private, non-profit organizations in designated areas of a state or territory.

Once a declaration is made for designated areas within a state, information on the application process will be made available to all affected communities. These 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 percent for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible.

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Last modified on Friday, 20 March 2020 14:18