The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital and to overcome the temporary loss of revenue to small businesses in designated states and territories that have experienced substantial economic injury as result of COVID-19.

Upon a request received from a state’s or territory’s governor, the SBA will issue an Economic Injury Disaster Loan declaration under its own authority. Here are additional details related to the Economic Injury Disaster Loan assistance:

  • Loans are available to small businesses and private, non-profit organizations in designated areas of a state or territory.
  • Once a declaration is made for designated areas within a state, please visit this link to begin the application process: https://disasterloan.sba.gov/ela/.
  • SBA can offer up to $2 million in assistance to impacted organizations in designated areas and may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid due to disaster impact.
  • The loan’s interest rate is 3.75% for small businesses and 2.75% for non-profit organizations.
  • SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

Click here for areas currently eligible for SBA disaster loans.

Contact Doeren Mayhew’s business advisors with any questions.

Updated March 25, 2020: Please note all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19).