The U.S. Small Business Administration (SBA) 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). Offering SBA Economic Disaster Loan and SBA Payment Protection Loan (PPP)
SBA’s Disaster Declaration Makes Loans Available Due to the Coronavirus (COVID-19)
• Once a declaration is made, SBA will publicize that Economic Injury Disaster Loan assistance is available to affected small businesses within the state.
• 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. The interest rate 2.75% for non-profits.
• 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.
What businesses are eligible to apply?
SBA’s Economic Injury Disaster Loans (or working capital loans) are available to small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations This includes:
• Businesses directly affected by the disaster
• Businesses that offer services directly related to the businesses in the declaration
• Other businesses indirectly related the industry that are likely to be harmed by losses in their community (Example: Manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product.
As an approved resource partner with SBA, AACCNJ & BTB are here to help ANY Small Business owner navigate and submit their EIDL / Grant and SBA PPP Application. Call The office today at 609-524-0530 or request an appointment by clicking on the button.
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