SBA to Provide Disaster Assistance Loans for Small Businesses Affected by Coronavirus
Small businesses and nonprofits with credit available elsewhere are not eligible for these loans, the SBA notes.
The U.S. Small Business Administration is trying to reassure businesses around the nation who are impacted by the coronavirus that help is available. A statement issued last week was meant to assure small businesses in the U.S. that they can pursue avenues to lessen the financial blow-current and future-caused by the COVID-19 pandemic.
The SBA says that its Economic Injury Disaster Loan program offers up to $2 million in assistance for a qualifying small business that has been hit by the impact of COVID-19. The program calls for certain small businesses and private, non-profit organizations in designated areas of a state or territory to be eligible to apply for relief through the SBA.
The SBA 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 interest rate for non-profits is 2.75%.
For additional information, please contact the SBA disaster assistance customer service center at 1-800-659-2955 or email [email protected].
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