With small businesses all across the country greatly affected by the coronavirus (COVID-19) outbreak, the U.S. Small Business Administration (SBA) has announced that its Economic Injury Disaster Loans can offer up to $2 million in assistance for a small business. These loans offer economic support to small businesses during the temporary loss of revenue they are experiencing.
“Small businesses are vital economic engines in every community and state, and they have helped make our economy the strongest in the world,” says SBA Administrator Jovita Carranza. “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.”
The SBA is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the coronavirus. Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act, an Economic Injury Disaster Loan declaration.
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 percent for small businesses without credit available elsewhere (businesses with credit available elsewhere are not eligible).
“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,” Carranza says. “The SBA will continue to provide every small business with the most effective and customer-focused response possible during these times of uncertainty.”
For more information on the SBA’s disaster assistance loans, visit its small business guidance & loan resources page.