SBA Offers Low Interest Federal Disaster Loans in Designated States
By: Amy Johnson
UPDATE: On Saturday, March 21st, Governor Kim Reynold announced that the U.S. Small Business Administration (SBA) has issued a disaster declaration for the state of Iowa as of January 31, 2020 and continuing. The declaration allows pandemic-impacted small businesses to apply for low-interest support loans. The declaration comes after Iowa Governor Kim Reynolds submitted a federal funding request via the SBA’s Economic Injury Disaster Loan program. To read the full release, click HERE.
The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to small businesses in designated states or territories suffering substantial economic injury as a result of the coronavirus (COVID-19). As of March 19, 2020, states with declarations include Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Louisiana, Maine, Massachusetts, Michigan, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Utah, Virginia, Washington and West Virginia. If your business is in one of these states you may apply online at https://disasterloan.sba.gov/ela. If you are unable to apply online, you may download an application at https://disasterloan.sba.gov/ela, under the Loan Information tab. Iowa Department of Economic Development Director, Debi Durham, has indicated that Iowa will be added to this list soon.
Completed applications should be mailed to:
U.S. Small Business Administration
Processing and Disbursement Center
14925 Kingsport Road
Fort Worth, TX 76155
Eligible states and territories are being updated regularly on the SBA website sba.gov/disaster to show the current eligibility for assistance. Again, look for Iowa to be coming soon!
Additional information about our Economic Injury Disaster Loans:
- SBA’s Economic Injury Disaster Loans offer up to $2 million for working capital to help support small businesses overcome the temporary loss of revenue they are experiencing.
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. The interest rate is 3.75% for small businesses and 2.75% for non-profits.
- SBA offers long-term loans up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
- SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response to COVID-19.
If you need help applying or are not sure if your business qualifies, please reach out to your BrownWinick attorney for assistance or submit a message through our Contact Us form. For updates on COVID-19 and new guidance provided by BrownWinick attorneys, please visit our COVID-19 Resource Page.