SBA Disaster Assistance for Coronavirus Impacts on Small Businesses and Non-Profits
The U.S. Small Business Administration (SBA) issued an Economic Injury Disaster Loan Declaration for New York State on March 19, 2020.
The Declaration allows SBA to offer low-interest federal disaster loans to provide working capital for small businesses and private, non-profit organization that are suffering substantial economic injury as a result of the Coronavirus (COVID-19).
- Economic Injury Disaster Loans offer up to $2 million in assistance to help small businesses overcome the temporary loss of revenue.
- They can be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.
- To keep the loans affordable, SBA can offer a long-term repayment schedule, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
This is not intended to be legal advice. You should contact an attorney for advice regarding your specific situation.