The coronavirus pandamic has hit small businesses hard. As a response to these disaster declarations, the US Small Business Administration is offering low-interest federal disaster loans to small businesses and non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by (COVID-19). Small businesses can apply for the loans at disasterloan.sba.gov/ela. Currently, all assistance is being offered online. They also have online webinars and training videos to help businesses with the application process and to provide additional information. Key elements of these loans are:
- The interest rate is 3.75% for small businesses and 2.75% for non-profits
- The SBA Economic Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses with fewer than 500 employees
- SBA offers loans with long-term repayments in order to keep payments affordable, up to 30 years. Terms are determined on a case to case basis, based on ability to pay
- Funds are intended to be used to pay fixed debts, payroll, accounts payable, and other bills that cant be paid due to the loss of revenue caused by a declared disaster. The loans Can not be used to cover lost profits.
For additional information, you can contact the SBA disaster assistance customer service center. Call 1-800-659-2955 or e-mail disastercustomerservice@sba.gov
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