Small Businesses Can Apply for SBA Disaster Loans
Small businesses and not-for-profits located in designated disaster locations due to the coronavirus pandemic can apply online for low-interest loans through the U.S. Small Business Administration (SBA).
An SBA Section 7(b) Economic Injury Disaster Loan provides up to $2 million to help businesses with fewer than 500 employees pay debts, payroll and accounts payable due to the loss of revenue by a declared disaster.
The interest rates for the loans are 3.75% for small businesses and 2.75% for not-for-profits. The SBA determines the terms of the loan on a case-by-case basis, based on the borrower’s ability to make loan repayments. The maximum loan term is 30 years. The loans also offer a one-year deferment on payments (although interest accrues from the date of the loan).
Small businesses can click here to apply for the loans.
Areas eligible for SBA disaster loans can be found on the Coronavirus (COVID-19) page on the SBA website.
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