The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). SBA disaster assistance (as of March 19, 2020) is now available to businesses in the following Oregon counties in our region: Curry, Jackson, Josephine, Klamath and Lake, it is also available in all counties within the state of California. “Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the Coronavirus (COVID-19) since Jan. 31, 2020, may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” said SBA Administrator Jovita Carranza.
“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. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing,” Carranza added.
Eligibility for Economic Injury Disaster Loans (EIDL) is based on the financial impact of the Coronavirus (COVID-19). The interest rate is 3.75 percent for small businesses. The interest rate for private non-profit organizations is 2.75 percent. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.
Applicants may apply online at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call (800) 877-8339. The deadline to apply for an Economic Injury Disaster Loan is Dec. 16, 2020.
Small Business Development Centers can offer business counseling (at no cost) to companies struggling with the impacts of the pandemic, including assistance with (EIDL) applications. To find your local center, go to: https://bizcenter.org/centers/