SBA (Small Business Association) Makes Up To $2 Million Loans Available To Small Business, Non-Profits Impacted By Coronavirus
/Early in March, the federal SBA (Small Business Administration) announced that businesses impacted by coronavirus could apply for a low-interest federal disaster loans.
The details of this were announced by Dutchess County on March 17, 2020. Below is the press release that explains how the loan works and how to apply:
Small Businesses in Dutchess County
Now Eligible for Disaster Relief
03/17/2020
Poughkeepsie ... The U.S. Small Business Administration (SBA) offers low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). 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 Connecticut Governor Ned Lamont on March 15, 2020.
“Our small businesses are the lifeblood of our community. This first wave of assistance from the federal government is essential to provide some stability to our businesses and not-for-profits struggling with cash flow. I am grateful to the SBA for including Dutchess in this declaration.”
The disaster declaration made SBA assistance available in Connecticut, as well as the contiguous counties of Dutchess, Putnam and Westchester in New York.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist 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 Administrator Jovita Carranza.
Dutchess County Executive Marcus J. Molinaro said, “Our small businesses are the lifeblood of our community. This first wave of assistance from the federal government is essential to provide some stability to our businesses and not-for-profits struggling with cash flow. I am grateful to the SBA for including Dutchess in this declaration.”
SBA Customer Service Representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process.
Who Can Apply For The Disaster Relief Loan
“Access to EIDL funds will help businesses cover basic essentials, such as payroll and fixed costs, in the short term and will bring much needed certainty and stability at a time when it’s needed most. The Chamber and Mid-Hudson Small Business Development Center is here to assist organizations with navigating this program and gaining access to low interest capital.”
“Small businesses, private nonprofit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the Coronavirus (COVID-19) since Jan. 31, 2020, may qualify for Economic Injury Disaster Loans (EIDL) of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” said Carranza.
“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 added.
Dutchess County Regional Chamber of Commerce President and CEO Frank Castella, Jr., said, “Access to EIDL funds will help businesses cover basic essentials, such as payroll and fixed costs, in the short term and will bring much needed certainty and stability at a time when it’s needed most. The Chamber and Mid-Hudson Small Business Development Center is here to assist organizations with navigating this program and gaining access to low-interest capital. We remain hopeful [that] consumer confidence and demand will be steady, supportive drivers for local businesses and nonprofit organizations — as this is essential, now more than ever, in moving the economy forward.”
“We know the impacts that the COVID-19 situation is causing and look forward to doing all we can to help our small businesses here in Dutchess County get through this challenge,” said SBA Regional Administrator Steve Bulger.
Who Is Eligible For Economic Injury Disaster Loans?
Eligibility for Economic Injury Disaster Loans is based on the financial impact of the Coronavirus (COVID-19). The interest rate is 3.75% for small businesses. The interest rate for private nonprofit organizations is 2.75%. 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.
How To Apply
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela.
Connection points include:
Applicants may also call SBA’s Customer Service Center at:
(800) 659-2955Email disastercustomerservice@sba.gov for more information on SBA disaster assistance.
Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339.
Completed applications should be mailed to:
U.S. Small Business Administration
Processing and Disbursement Center
14925 Kingsport Road, Fort Worth, TX 76155.
Deadline To Apply
The deadline to apply for an Economic Injury Disaster Loan is Dec. 16, 2020.
For more information about Coronavirus, please visit: http://www.Coronavirus.gov.
For more information about available SBA resources and services, please visit: http://www.SBA.gov/coronavirus.
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About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit http://www.sba.gov.
