Small businesses that are being substantially affected by the COVID-19 pandemic are now eligible to receive Economic Injury Disaster Loans being offered by the U.S. Small Business Administration, according to a press release from Montgomery County.
SBA workers provide assistance to community members applying for loans. Courtesy of Wikimedia Commons.
The “Coronavirus Preparedness and Response Supplemental Appropriations Act” allows small businesses and nonprofits to apply for up to $2 million in loans to cover operating expenses. Eligibility is based on the financial impact the coronavirus health crisis has had on a specific business.
These loans may be used to pay debts, payroll, accounts payable, and other bills that need to be paid on a fixed schedule.
The interest rate is 3.75 percent for small businesses and the interest rate for non-profit organizations is 2.75 percent.
“During this time of uncertainty, all levels of government need to explore every option to keep businesses from shutting down permanently,” said Jerome Fletcher, Assistant Chief Administrative Officer for Economic Development, in the press release. “These desperately needed loans will help them get through this crisis as we prepare for the next phase of recovery for the economy.”
The deadline to apply for an Economic Injury Disaster Loan is Dec. 21, 2020.
