The United States Small Business Administration (SBA) has extended disaster relief loans to include businesses that have been negatively impacted by COVID-19. These low-cost loans are intended to provide working capital relief to companies and small non-profit organizations to alleviate economic injury caused by the pandemic. Note that Economic Injury Disaster Loan assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere.
The loans offered are up to $2 million and can be used to meet payroll or current accounts payable. Interest rates are generally 3.75% for small businesses and 2.75% for non-profits. SBA offers loans with repayments up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
A small business, as defined by the SBA, depends on the particular industry and sub-sectors therein.
To see if your business qualifies as a small business, follow this link: https://www.sba.gov/size-standards/.
As of this writing, Ohio has not been added to the list of states under the national disaster relief program but is expected to be added to the list on Friday, April 20. Currently, twenty-two states and the District of Columbia are participating.