SBA Coronavirus (COVID-19) Disaster Relief Loans
Per disasterloan.sba.gov as of March 17, 2020, the following areas are approved for disaster loan assistance due to the Coronavirus (COVID-19): California, Connecticut, Idaho, Maine, Massachusetts, New Hampshire, New York, Oregon, Rhode Island, and Washington. Go here to apply for a disaster loan.
For businesses or other organizations being affected by the coronavirus outbreak, the federal government is offering assistance through the U.S. Small Business Administration (SBA).
On March 12, 2020, the SBA announced it will offer loans of up to $2 million to qualifying borrowers located in designated states and territories affected by coronavirus.
A state or territory’s governor has to request the SBA to issue an Economic Injury Disaster Loan declaration as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act. The Economic Injury Disaster Loan declaration makes loans available, through a network of various lenders, to private small businesses and not-for-profit organizations located in the designated disaster areas to help deal with the economic fallout from the coronavirus epidemic.
The loans can be used to pay debts, operating costs, payroll, and other expenses that the borrower otherwise would not be able to pay due to the impact of coronavirus. The loans will have interest rates of 3.75% for small businesses and 2.75% for not-for-profit entities.
The loans will have various repayment terms up to a maximum of 30 years. Terms are determined based on a borrower’s ability to repay the loan.
The source of this information is the SBA. You are encouraged to check their website regularly.
If your organization needs assistance understanding this process or if you have any other concerns regarding your business during this coronavirus crisis, please contact the partner in charge of your account or:
Bryan Decker, CPA
email@example.com | 203.705.4126