SBA expands relief loans to small businesses hit by COVID-19
Read our update on proposed stimulus package to expand SBA loans for COVID-19.
Small businesses are the heartbeat of our communities, a place for social gatherings and the backbone of your local economy.
There is no doubt that they are being affected by COVID-19. During this critical time, support from their communities and governments could provide a lifeline for those that are facing the economic impacts of the virus.
At Wipfli we are working hard to provide information as it arises regarding access to support from the SBA.
Information from the U.S. Small Business Administration (SBA) regarding designated states and territories Economic Injury Disaster Loan assistance to aid businesses affected by the coronavirus is continually updating as the situation progresses. A national emergency has been declared by the president and each normally state must work with its counties and apply to be declared a disaster area.
SBA announced March 17, 2020 that they have waived the normal disaster declaration process allowing governors to declare their entire states eligible. As a result, many more states have become eligible.
Here are the details of the loan:
- Eligible small businesses (less than 500 employees) can receive up to $2 million in funding through SBA disaster loan assistance.
- These loans are tentatively at 3.75% interest rates and 2.75% for non-profits.
- Loans may be used to pay fixed debts, payroll, accounts payable and other bills that otherwise could not be paid due to COVID-19.
- Payment options available up to 30 years that keep payments affordable. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
The SBA has set up a website to easily look up if your area has been declared eligible for these funds, apply on-line and check the status of your application.
The loan application process is a three-step process, which is detailed on its website.
Please be reminded SBA has never faced a disaster of this magnitude and it will take them some time to get the delivery resources of the program in place.
Additional resources and staying informed
The situation is continually evolving, to stay up to date and for more details on ways to respond to COVID-19, please view these sites:
- Coronavirus (COVID-19): Small Business Guidance and Loan Resources
- SBA to Provide Disaster Assistance Loans for Small Businesses
- Facebook $100 million grant program for small businesses
- Amazon is offering $5 million in grants to the small businesses near their campuses
- You can also access resourced from us through our Wipfli, LLP COVID-19 Resource Center
- Read our update on proposed stimulus package to expand SBA loans for COVID-19.
