Small businesses are feeling the pain of social distancing and self-isolation from the Coronavirus (COVID-19) pandemic. Non-essential businesses are shut down, restaurants have closed their dine-in services, and the changing employment landscape is causing many people to hold off on spending.
One option for covering costs during the pandemic is through Small Business Administration (SBA) Economic Injury Disaster Loans. These loans offer up to $2 million in assistance and can help businesses overcome temporarily losses of revenue, including that from the Coronavirus. The SBA asks small businesses seeking more than $25,000 to put up collateral, ideally real estate.
SBA Small Business Loans have interest rates of 3.75% for small businesses and 2.75% for nonprofits. The organization offers long-term repayments, up to a maximum of 30 years. The SBA considers each business on a case-by-case basis.
The SBA determines loans by looking at actual economic injury. This ties in to what the loans can be used for, such as:
Other bills that can’t be paid because of the disaster’s impact
Eligible Areas: Small business owners in all U.S. states and territories are eligible to apply for an SBA low-interest loan due to Coronavirus (COVID-19).
How to Apply: You can apply online.
Interested in applying? There is certain information you should have available for your application, including:
Employee Identification Number
Date of establishment
Personal information for business owners
Personal financial statements for each owner
The value of cash, receivables, and personal property
Debts and liabilities
Have questions? You can contact the SBA directly at 1-800-659-2955 or email@example.com for assistance.