SBA To Provide Small Businesses Impacted by Coronavirus (COVID-19) Up to $2 Million in Disaster Assistance Loans

Published:

WASHINGTON – SBA Administrator Jovita Carranza issued the following statement today 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.”

 

Process for Accessing SBA’s Coronavirus (COVID-19) Disaster Relief Lending

 

  • The 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.

 

  • 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.

 

  • 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.

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About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

 

21 Comments

  1. Edward Ungrue

    Information appreciated

    Reply
  2. Chris medvitz

    “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.”

    Has the Governor’s office requested this from SBA?

    Reply
  3. John Doe

    Same question here; “Has the Governor’s office requested this from SBA?”. We have a small business in need of this loan. Business has dropped dramatically!

    Reply
  4. Brenda Jantz

    “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.”

    When will these SBA loans be available?

    Reply
  5. John Lee

    Same question. ” Has the governor’s office requested this from SBA?” When will these SBA loans be avaiable?

    Reply
  6. Reiner Nusbaum

    I am a small business owner in Orange County which has been significantly affected by the coronavirus. I have emailed the Governor’s office asking him to please request these Federal relief funds for small businesses like mine that have been affected by this emergency. I would encourage any small business owner experiencing difficulty to do the same. Without swift action from our government and leaders, I fear many small businesses could close and not have the ability or capital to reopen.

    Reply
    • Brent

      What email did you use to contact the Governor’s office? I think every one should be doing this. Once you respond we should all send messages to our friends and neighboring businesses to send emails. I fer the same. Please respond ASAP. Thank you…

      Reply
  7. Daphne Lowe

    3.75 interest!!!! Way to make a profit on our misfortune!

    Reply
    • Brent

      I agree. This organization better rethink what they are representing and not try and capitalize on this misfortune. Interest rates should be less than 1%. They don’t even state how often they compound. Without small business this organization does not exist.

      Reply
  8. Charles J Lochtefeld

    Is SBA planning to provide something more than a statement ?

    For example, a process ?

    Anything – anything – Bueller ?

    Reply
  9. Dennis Seckel

    This is what the government should be doing. I’m in Idaho which has not been impacted yet. I own a bowling center and though I was no fan of Pres Obama he really helped me out during the economic down turn in 2008-2010 by offering me a $35,000 five year INTEREST Free loan which I gladly took and repaid. I will be looking into this when the wave hits.

    Reply
  10. Henry M Silvestre

    Please send me all the info with regards to this loan. I own a small Donut shop and need help to stay afloat.

    Reply
    • Lorna Murdock

      I agree. San Francisco offers their small businesses a grant! Sadly my business is across the bay on Contra Costa county. I think the airline industry can handle a 3.75% interest loan, but we small businesses should be given no-interest loans or grants so we don’t have to shut down altogether!

      I’m happy to write the governor if Reiner Nusbaum shares the email address he used.

      Let’s do this!

      Reply
  11. sarah lohner

    Please send us any info…. We are loosing all our business in Calif. due to coronavirus.

    Reply
  12. Dave Mercado

    Where do I send my worksheet to, if i am out of sacramento

    Reply
  13. Toni K.

    We own a small commercial building with 6 tenants. Five of the six tenants are shutdown and the sixth is barely managing to stay open. None of our tenants can pay rent. This is our only source of income as we are retired. Is there any assistance for the property owners such as our self?

    Reply
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    Email : osinska.mariola.17@gmail.com
    Best Regards .

    Reply
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