The U.S. Small Business Administration (SBA) is providing loans up to $2 million for experiencing a hard economically hit by the coronavirus.
The SBA Economic Injury Disaster Loans support small businesses who have been impacted severely due to the COVID-19 pandemic by providing them with working capital loans up to 2 million. The working capital can be used to cover expenses due to the loss of revenue that many businesses are experiences during this time.
The SBA issued this news release:
“The SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years,” it said in a press release. “Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay. The interest rate is 3.75 percent for small businesses that can’t secure credit elsewhere. Businesses with credit availability are not eligible. The interest rate for non-profits is 2.75 percent.”
Businesses affected must have 500 or fewer employees and be in a designated disaster area to be eligible, Newsday reported.
Our agency will work directly with state governors to provide targeted, low-interest disaster recovery loans to small businesses that have been severely impacted by the situation. Additionally, the SBA continues to assist small businesses with counseling and navigating their own preparedness plans through our network of 68 district offices and numerous resource partners located around the country. The SBA will continue to provide every small business with the most effective and customer-focused response possible during these times of uncertainty.” stated
SBA Express Bridge Loans
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
Up to $25,000
Will be repaid in full or in part by proceeds from the EIDL loan
Find more information on the SBA’s Economic Injury Disaster Loans at: SBA.gov/Disaster.
Contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail, email@example.com.