In an effort to support America’s small business infrastructure, the U.S Small Business Administration announced it is offering federal disaster loans for working capital to small businesses that have sustained substantial economic damage caused by COVID-19.
These loans can be used to pay off outstanding debts, payroll, and any other bills they are unable to pay because of the disaster’s impact. Loan approvals and terms are considered on a case-by-case basis; loans offer up to $2M in assistance to help overcome temporary revenue losses, with an interest rate of 3.75% and repayment plans as long as 30 years.
The loans require that the business’ state and/or territory has been approved by the SBA. Here are some of the states and areas that are eligible for SBA relief disaster loans as of Friday, March 20th, in addition to select counties in other states:
- District of Columbia
Once a state or territory is approved, these affected businesses will receive more information. You can find a regularly updated list of states where relief assistance is being offered here. For more information, you can read the SBA’s press release on the topic.