The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
These SBA loans are available to small businesses that meet the following criteria:
- Credit history – Applicants must have a credit history acceptable to SBA.
- Repayment – SBA must determine that the business has the ability to repay the loan.
- Eligibility – The business must be physically located in a declared county and suffered working capital losses due to COVID-19, not due to a downturn in the economy or other reasons.
Eligible entities may qualify for loans up to $2 million based on size and type of business and its financial resources. Interest rates are 3.75% for small businesses and 2.75% for nonprofits with terms up to 30 years. Loans over $25,000 require collateral such as real estate or borrowers pledge in the absence of collateral.
To apply, you should go directly through the SBA’s Disaster Assistance Program at: https://disasterloan.sba.gov/ela/