While federal, state, and local governments grapple with containing the spread of COVID-19, businesses of all sizes are feeling the impact. Small businesses in particular are having to cut staff, reduce hours, and for many, close their doors entirely.
There are however resources available (with more coming online daily) for businesses to consider.
The first is the SBA coronavirus small business assistance loans. There are also several states and cities running programs. Private companies like Facebook have created grant programs for qualifying small businesses, and SoftBank is trying to raise another round of funding to assist its portfolio companies.
Details on the SBA loan program are as follows:
These loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits. Loan repayment terms vary by applicant, up to a maximum of 30 years.
Who’s Eligible
As of March 20, businesses in the following states can apply: Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Louisiana, Maine, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Washington and West Virginia.
You can use the loan to cover accounts payable, debts, payroll and other bills the coronavirus has affected your ability to pay.
How to Apply
Apply online and select “Economic Injury” as the reason you’re seeking assistance.
You’ll need to supply required supporting documentation that could include the business’s most recent tax returns, a personal financial statement and a schedule of liabilities that lists all your current debts.
Call the SBA Disaster Assistance Customer Service Center at 1-800-659-2955 for help with your application.
Small businesses have been hit hard by mandatory closures and safety measures required to slow the spread of the coronavirus (COVID-19).