WASHINGTON (KFOR) – As people across the country take steps to protect themselves from COVID-19, many small businesses are wondering about their future.
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses that are suffering substantial economic injury as a result of the novel coronavirus.
Once a state’s governor asks for help, the SBA will issue an Economic Injury Disaster Loan declaration.
Any Economic Injury Disaster Loan assistance declaration makes loans available to small businesses and private, non-profit organizations in the area. The loans offer up to $2 million in assistance and can provide vital economic support to small businesses.
The loans can 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 without credit available elsewhere. Businesses with credit available elsewhere are not eligible.
“The President took bold, decisive action to make our 30 million small businesses more resilient to Coronavirus-related economic disruptions. Small businesses are vital economic engines in every community and state, and they have helped make our economy the strongest in the world. 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. Additionally, the SBA continues to assist small businesses with counseling and navigating their own preparedness plans through our network of 68 District Offices and numerous Resource Partners located around the country. The SBA will continue to provide every small business with the most effective and customer-focused response possible during these times of uncertainty,” said SBA Administrator Jovita Carranza.