The U.S. Small Business Administration (SBA) is offering designated small businesses and nonprofit organizations low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). As our communities and businesses continue to face the economic impacts of COVID-19, this designation will be a crucial step in providing small businesses the economic capital necessary to overcome the temporary loss of revenue they are experiencing.
- SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance per small business and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
- 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% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
- SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
- Applicants will need to complete a two-page application, 4506T IRS form to transfer information, and a personal finance statement.
- More information might be requested for more complex businesses or those seeking a higher loan amount.
Original source can be found here.
