We’ve been talking a lot about U.S. Small Business Administration (SBA) low-interest federal disaster loans lately. If your business has been adversely affected by COVID-19, an SBA disaster loan could be a viable solution. $50 billion in funding has been set aside for the program which offers up to $2 million in assistance for each small business so you can pay debts, meet payroll, handle accounts payable and keep your business running.
Interest rates are 3.75% for small businesses and 2.75% for non-profit organizations. If your businesses has credit available elsewhere, you’re not eligible for an SBA disaster loan. The loans offer long-term repayment terms of up to 30 years.
The loans are a federal program but are administered by your state and county. Most states and territories are still in the process of applying to be part of the program. If your state hasn’t yet completed the process, contact your representative to encourage them to finish.
For more information, go to sba.gov/disaster-assistance/coronavirus-covid-19.