SBA offering loans to small businesses impacted by COVID-19
SOUTH LAKE TAHOE, Calif. — The U.S. Small Business Administration is offering low-interest federal disaster loans to California small businesses who have suffered substantial economic loss due to COVID-19.
SBA Administrator Jovita Carranza announced the change. SBA acted under its own authority as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the president, to declare a disaster following a request received from Gov. Gavin Newsom’s designated representative, Director Mark S. Ghilarducci of the Governor’s Office of Emergency Services on March 13.
Assistance is available in 35 California counties, including El Dorado, Alpine and Placer Counties.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist California small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of the Coronavirus (COVID-19),” said Carranza in a press release.
Small businesses, private non-profit organizations, small agricultural cooperatives and small aquaculture enterprises who have been financially impacted by COVID-19 can apply.
The interest rate for the Economic Injury Disaster Loan is 3.75% for small businesses and 2.75% for private non-profits.
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.
“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 said.
The deadline to apply is Dec. 16, 2020.
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