SBA Assistance for Businesses Impacted by Coronavirus (COVID-19)

By Staff Reports

(Victor Valley)– The U.S. Small Business Administration 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 (COVID-19). 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 that was recently signed by the President, an Economic Injury Disaster Loan declaration. The SBA’s Office of Disaster Assistance is working with the State of California to complete this step.

Once SBA makes an Economic Injury Disaster Loan (EIDL) declaration in response to a Governor’s request, small businesses in primary declared counties, as well as contiguous counties, will be able to apply online for EIDL assistance at SBA.gov/disaster.

SBA continues to assist small businesses with accessing federal resources, such as working capital loans and counseling, and navigating their preparedness plans through our network of 68 District Offices and numerous Resource Partners located around the country. Find more information on the SBA’s available resources at: SBA.gov/Coronavirus.

SBA also provides disaster assistance loans to those affected states or territories following a declared disaster. Once a Governor makes a formal request to SBA certifying that at least five small businesses in a designated area have suffered substantial economic injury as a result of the Coronavirus, the SBA will quickly review the request and if the Administrator then issues an Economic Injury Disaster Loan (EIDL) declaration, the agency will be able to provide Economic Injury Disaster Loans of up to $2 million per small business. These loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing. Find more information on the SBA’s Economic Injury Disaster Loans at: SBA.gov/Disaster.

Small businesses are encouraged to do their part to keep their employees, customers and themselves healthy. The Centers for Disease Control and Prevention (CDC) offers the most up-to-date information on COVID-19, as well as Guidance for Businesses and Employers to Plan and Respond.

Economic Injury Disaster Loan details:

Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small businesses and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by the Coronavirus (COVID-19).

SBA’s Office of Disaster Assistance will coordinate with the state’s or territory’s Governor to submit the request for Economic Injury Disaster Loan assistance.

Once a declaration is made for designated areas within a state, the information on the application process for Economic Injury Disaster Loan assistance will be made available to all affected communities as well as updated on our website: SBA.gov/disaster.

SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses 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%.

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.

SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible.

For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.

News Release originally posted on U.S. Small Business Administration (SBA)

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