SBA is Providing Small Businesses Loans Up To $2 Million Due To Coronavirus

Posted In Taxes Accounting | Posted On 17, March 2020 | Posted By AB Value Team


If your business has been impacted by the Corona Virus there are steps you can take to weather the storm. 


Recently the Small Business Association has introduced the Economic Disaster relief loans up to $2 Million for smalls businesses affected by the Corona Virus. 


Here's what you need to know and how to apply:


SBA Administrator Jovita Carranza issued the following statement in response to the President’s address to the nation: 


“The President took bold, decisive action to make our 30 million small businesses more resilient to Coronavirus-related economic disruptions. Small businesses are vital economic engines in every community and state, and they have helped make our economy the strongest in the world. 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.”


How to get SBA’s Coronavirus (COVID-19) Disaster Relief Lending

  • The U.S. Small Business Administration is providing designated states and areas low-interest federal disaster loans for working capital to small businesses affected by substantial economic injury as a result of the Coronavirus (COVID-19). 

  • Economic Injury Disaster Loan assistance loans are available to small businesses and private, non-profit organizations in designated territories and states

  • Small Business Association (SBA) Office of Disaster Assistance will assist with the designated areas 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.

  • Loans may be used to pay fixed debts, payroll, accounts payable and other expenses that can’t be paid because of the disaster’s impact. 

  • The interest rate is 3.75% for small businesses without available credit elsewhere; businesses with credit available elsewhere are not eligible. 

  • The interest rate for non-profits is 2.75%.


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