SBA Offers Disaster Assistance to Small Businesses Impacted by COVID-19
As a St. Louis firm and an advisor and resource for individuals and businesses in our region, we want to bring awareness to valuable tools available during this challenging time.
The U.S. Small Business Administration (SBA) is hoping to provide some relief to small businesses during the COVID-19 outbreak. The SBA plans to offer up to $2 million in assistance for designated states and territories in the form of low-interest federal disaster loans. These loans are for working capital for small businesses suffering substantial economic injury as a result of the coronavirus.
About the Disaster Loans
The SBA Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills. The interest rate is 3.75% for small businesses and 2.75% for not-for-profit organizations. Long-term repayment terms help keep payments affordable, and are determined on a case-by-case basis, up to 30 years.
The 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. Visit the SBA website for an updated list of eligible states and territories.