SBA to provide disaster assistance loans to small businesses

The U.S. Small Business Administration this morning announced it will make up to $2 million available for small businesses impacted by the coronavirus epidemic.

The disaster relief lending program is open to small businesses and nonprofits that are “suffering substantial economic injury as a result of the coronavirus,” according to a news release. It’s part of a $50 billion budget request announced by President Donald Trump to provide aid to small businesses.

“Small businesses are vital economic engines in every community and state, and they have helped make our economy the strongest in the world,” SBA Administrator Jovita Carranza said in the release “Our agency will work directly with state governors to provide targeted, low-interest disaster recovery loans to small businesses that have been severely impacted by the situation.”

Ram Basnet, SBA branch manager in Springfield, said the country’s state governors must request disaster declaration through the SBA before the loans can be issued. Once approved, small businesses and nonprofits can visit the SBA’s website to apply.

The loans, which can be used to pay fixed debts, payroll, accounts payable and other expenses, will be made available with a 3.75% interest rate for small businesses and 2.75% rate for nonprofits, according to the release.