The U.S. Small Business Administration announced on March 16th that they are offering low-interest federal disaster loans for working capital to California small businesses suffering substantial economic injury as a result of COVID-19. These loans provide vital economic assistance to help small businesses overcome the temporary loss of revenue they are experiencing.
The disaster declaration makes SBA assistance available in many California counties, including Orange County. Businesses, private non-profit organizations, agricultural cooperatives and aquaculture enterprises that have been financially impacted as a direct result of COVID-19 may qualify for loans of up to $2 million. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Applicants can apply in three easy steps:
Eligibility for Economic Injury Disaster Loans is based on the financial impact of COVID-19. The loans are intended to help businesses meet financial obligations and operating expenses which could have been met had the disaster not occurred.
The interest rate is 3.75 percent for small businesses and 2.75 percent for private non-profit organizations. SBA offers loans with long-term repayments, up to a maximum of 30 years, in order to make payments more affordable.
Applicants may review disaster assistance information and apply online at https://disasterloan.sba.gov/ela. The deadline to apply for an Economic Injury Disaster Loan is Dec. 16, 2020. Interested applicants may call SBA’s Customer Service Center at (800) 659-2955 or email email@example.com for more information.