SBA Makes Loans Available In Some Areas For Businesses Impacted By COVID-19
The U.S. Small Business Administration (SBA) is offering designated states and territories low-interest federal disaster loans for working capital to small businesses that are suffering economic injury as a result of COVID-19. The SBA has designated COVID-19 as a qualifying event for Economic Injury Disaster Loans (EIDL) for businesses and private nonprofits in affected communities.
The EIDLs will offer up to $2 million in assistance to small businesses that 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. The interest rate for nonprofits is 2.75 percent. Long-term repayment plans are available to a maximum of 30 years. Terms are determined on a case-by-case basis, based on each borrower’s ability to repay.
For EIDLs to become available, the SBA must receive a request from a state or territory’s governor. Once it has, it will issue under its own authority an EIDL declaration, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the president.
At present, areas eligible for SBA disaster loans includes certain counties in Arizona, California, Colorado, Connecticut, Idaho, Maryland, Massachusetts, New Hampshire, New York, North Dakota, Oregon, Rhode Island, Texas, Virginia and Wyoming,
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