As we await the Senate’s final version of the CARES Act and its provisions for federal business loans and individual relief in the wake of the Coronavirus pandemic, the U.S. Small Business Administration (SBA) has begun accepting applications for small businesses to apply for federal disaster loans up to $2 million each.
New York, New Jersey and Connecticut are among the states that have been approved for “disaster status” by the SBA, opening the door for small businesses across the states to apply for the Economic Industry Disaster Loans (EIDL). This status was determined by the level of inevitable economic injury these businesses will suffer as a result of the COVID-19 outbreak.
This assistance is available with low interest rates (3.75% for for-profits and 2.75% for not-for-profits) and long-term repayment options up to 30 years on a case-by-case basis. The loans can be used to pay fixed debts, payroll, accounts payable and other bills that are going unpaid because of the disaster’s impact.
Eligible businesses are those with 500 or fewer employees that have been “severely impacted” by the pandemic and are unable to secure other financing to keep operating.
Click here for the latest list of states approved for SBA loans due to the COVID-19 outbreak.
Keep in mind that applying for federal aid could disqualify your business from state or local grants, so any decisions should be made with all available or forthcoming options in mind.
