The U.S. Small Business Administration (SBA) has an existing program, the Economic Injury Disaster Loan program, that extends disaster relief loans to small businesses, including nonprofits, to help alleviate economic injury caused by disasters.
On Thursday, March 12, 2020, the SBA announced that the program will be available to claims arising from COVID-19.
The SBA will work with state officials to offer loans of up to $2 million. “These loans “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. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.”
California has already qualified as a locale eligible for this program.
For details and information, see here. See also, Disaster Assistance Loans Available to San Diego County Small Businesses.
Apply online through SBA’s secure Disaster Loan Assistance website. For application information, please call 1-800-659-2955 or email DisasterCustomerService@sba.gov.
FPLG | May L. Harris, Esq., M.A.
