By: John Wilson
Chief Lender, Executive Vice President
The U.S. Small Business Administration (SBA) is offering low interest, federal disaster loans across the country to small businesses suffering substantial economic injury as a result of the Coronavirus.
SBA’s Economic Injury Disaster Loans are available to small businesses, small agricultural cooperatives, small agriculture businesses and most private, non-profit organizations
- 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.
- Credit History: Applicants must have a credit history acceptable to SBA.
- Repayment: SBA must determine that the applicant business has the ability to repay the SBA loan.
- Eligibility: The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.
Eligible businesses or organizations may qualify for loans up to $2 million. The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years. Eligibility is based on the small business size, the type of business and its financial resources.
These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion.
For other details and to apply, visit www.sba.gov. If you need additional information or have questions, contact your INB commercial lender