March 30, 2020
The U.S. Small Business Administration (SBA), which has been a resource for small business owners and entrepreneurs in the U.S. since 1953, recently released a list of disaster-relief measures in response to the COVID-19 pandemic.
Per the Coronavirus Preparedness and Response Supplemental Appropriations Act, which was enacted by the President on March 6th, the SBA has the authority to issue Economic Injury Disaster Loan declarations for states and territories whose Governor requests it. This declaration makes loans available to small businesses and private non-profits in specific areas that are suffering substantial economic injury due to COVID-19. The goal of the loans is to help alleviate economic injury. The Governors of states and territories will need to coordinate with the SBA’s Office of Disaster Assistance in order to submit their requests.
Interest rates for the loans are as follows:
*Please note: Only small businesses without access to credit from any other source are eligible. Small businesses that have access to other sources of credit are not eligible.
Further details about the SBA’s Economic Injury Disaster Loan program include the following:
- The program will offer up to $2 million in assistance.
- The loans can be used to pay a variety of obligations, including fixed debts, payroll, accounts payable, and other bills.
- The program offers long-term repayments with a maximum of 30 years.
- Loan repayment terms will be determined on a case-by-case basis.