SBA to Provide Loans for Businesses Affected by Coronavirus

YOUNGSTOWN, Ohio – The Small Business Administration will provide businesses affected by the coronavirus loans up to $2 million, the agency has announced.

The SBA’s Office of Disaster Assistance will work with governors to submit requests for Economic Injury Disaster Loan assistance. Once areas have been designated for relief, affected communities will receive more information. 

“The President took bold, decisive action to make our 30 million small businesses more resilient to Coronavirus-related economic disruptions,” said administrator Jovita Carranza in a statement. “Small businesses are vital economic engines in every community and state, and they have helped make our economy the strongest in the world. Our agency will work directly with state governors to provide targeted, low-interest disaster recovery loans to small businesses that have been severely impacted by the situation.”

The SBA is offering federal disaster loans for working capital to small businesses that suffer “substantial economic injury” as a result of the spread of COVID-19, the disease caused by coronavirus.

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.” 

Small businesses without credit available will have an interest rate of 3.75%; businesses with credit available are not eligible. Nonprofits will have an interest rate of 2.75%.

Long-term repayment plans are available, up to 30 years. Terms are decided on a case-by-case basis.

Related Stories:
March 12: Coronavirus Fears Wipe Out Area Retail Shelves
March 12: DeWine Closes Schools, Bans 100-Person Gatherings
March 12: Nursing Homes, Hospitals Implement Virus Precautions
March 12: SBA to Provide Loans for Businesses affected by Coronavirus
March 12: Area Events Cancelled, Postponed by Coronavirus
March 12: Eastgate, Chambers of Commerce Cancel Annual Meetings
March 12: Business Begins to Feel Economic Toll from Virus
March 11: Breaking: St. Joe’s Cared for Patient Who Has COVID-19
March 11: Local Business Reacts to Spread of Coronavirus
March 11: Businesses, Organizations Report Virus Precautions, Event Cancellations
March 11: Seven Local Polling Sites Moved Due to Coronavirus Concerns
March 11: Coronavirus Update: Not Enough Tests
March 10: DeWine Recommends Limiting Large Indoor Gatherings
March 10: YSU Extends Spring Break, Finalizing Plans for Alternative Instruction
March 10: Mercy Cancels Health Day Amid Ohio’s 1st Coronavirus Diagnoses

Copyright 2020 The Business Journal, Youngstown, Ohio.