SBA to provide small businesses impacted by Coronavirus (COVID-19) up to $2M in Disaster Assistance Loans
March 17, 2020
The U.S. Small Business Administration officials are working directly with governors across the country to facilitate a disaster declaration from the SBA to make small businesses and nonprofits eligible for Economic Injury Disaster loans of up to $2M 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%.
Ohio has 950,000 small businesses eligible for assistance. There is not a limit on the number of loans available in a given area.
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.
“Small businesses are vital economic engines in every community and state, and they have helped make our economy the strongest in the world,” SBA Administrator Jovita Carranza said in a press release. “SBA officers 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. The SBA will continue to provide every small business with the most effective and customer-focused response possible during these times of uncertainty.”