SBA to Make Economic Injury Disaster Loans Available in Response to Coronavirus
March 18, 2020
The United Small Business Administration (SBA) will make low-interest working capital loans available to small businesses affected by the COVID-19 pandemic under the SBA's Economic Injury Disaster Loan Program. In addition, President Trump has requested that Congress act to increase appropriations to the SBA from $19 billion to $50 billion to make more assistance available to small businesses.
The loans will be available to small businesses and eligible non-profit organizations with the following details:
· Loan amount of up to $2,000,000 per borrower
· Carry an interest rate of 3.75 percent (2.75 percent for nonprofit organizations)
· Payable over a term of up to 30 years
· Proceeds of the loans may be used to pay existing fixed debt, employee payroll, accounts payable and other expenses of operation
In order to be eligible, a small business or non-profit organization must be:
· Located in an area that the governor of the state has declared to be an impacted area
· The business must be unable to secure loans from other sources
Details for submission of applications for assistance will be released once an area has been designated by the state's governor and the SBA.