U.S. Small Business Administration (SBA)

U.S. Small Business Administration (SBA)

U.S. Small Business Administration (SBA)

·         The Small Business Administration will work directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19). The SBA's Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. 

·         The Coronavirus Preparedness and Response Supplemental expanded the disaster definition for the Small Business Administration's Economic Injury Disaster Loans (EIDL) to include COVID-19. Economic Injury Disaster Loans are SBA loans that are available to eligible Small Businesses, Small agricultural cooperatives, and most non-profits that have experienced substantial economic injury as a result of a disaster.  

·         EIDLs are available in areas that are declared a disaster area by the SBA.

·         There has to be an SBA Disaster Declaration in an area for EIDL loans to be made available, which originates from a request made by the Governor.

·         To assist in the efforts, the SBA engages with States' Emergency Response Teams to help them comply with the requirements before a request is made.

·         EIDL Loan Details

·         Entities that can apply for EIDL loans are eligible Small Businesses, Small agricultural cooperatives, and most private nonprofit organizations.

·         EIDL Loans are up to $2million and have terms as long as 30 years.

·         State and local officials who have been contacted by Small Businesses that may have been affected should share that information with their Governor or the State's Emergency Response Officials. More information on SBA's disaster loans, including eligibility and how to apply for loans, can be found here: www.SBA.gov/disaster