Loans Available for Small Businesses Affected by COVID-19
As companies, schools, and organizations continue to close to prevent the spread of COVID-19, with some soon to find themselves short-staffed due to ill employees, small businesses will bear the financial brunt of the pandemic.
The U.S. Small Business Administration (SBA) announced it is working directly with state governors to provide targeted, low-interest disaster recovery loans to small businesses that have been severely impacted by the coronavirus. SBA’s Economic Injury Disaster Loans offer up to US$2 million in assistance to small businesses to help them overcome the temporary loss of revenue they are experiencing.
These loans may be used for 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, and 2.75% for nonprofits.
In addition, the SBA will continue to assist small businesses with counseling and navigating their own preparedness plans through its network of 68 district offices and numerous resource partners located around the country.