by Gregory S. Dowell
March 23, 2020
Small businesses that have suffered substantial economic injury due to COVID-19 may apply for Federal disaster relief loans from the Small Business Administration (SBA). Loans will be available to small businesses and nonprofits to help alleviate the economic impact of COVID-19. A few important notes about these loans:
- Small business owners and nonprofits in all US states and territories are eligible for these loans.
- These loans can be made for up to $2 million.
- The loans can be used to pay for fixed debts, payroll, accounts payable, and other bills that businesses and nonprofits can not pay, due to the impact of the virus.
- The loans cannot be used to cover lost profits.
- The interest rates on these loans is 3.75% for small business and 2.75% for nonprofits.
- Loans can go up to a maximum of 30 years, with terms of the loans determined on a case-by-case basis, considering each borrower’s ability to pay.
- Available to employers with 500 or fewer employees.
- While the loans offer a one-year deferral of payment, the interest begins accruing on the loans immediately.
Applications for these loans is made online at disasterloan.sba.gov/ela. Due to virus exposure concerns, the SBA is moving all assistance online, where webinars and training videos may be accessed as well.