SBA Loans for Small Businesses Impacted by COVID-19

According to the Small Business Administration, small business owners "in all U.S. states and territories" are currently eligible to apply for a low-interest rate loan if the business has suffered substantial economic injury due to coronavirus.

These loans are available through the SBA’s Economic Injury Disaster Loan Program. The loan amount can be for up to $2 million at a 3.75% interest rate for businesses and 2.75% for nonprofits with a term of up to 30 years, depending on the borrower’s ability to repay. These loans can be used to pay for debts, payroll, accounts payable, and other bills that can’t be paid because of coronavirus. Detailed information and online application forms are available on the SBA's website.

UPDATE: Since I published this post, information about the CARES Act has become available. Among other things, this act creates a new "Paycheck Protection Program," which authorizes forgivable SBA loans to eligible businesses. More information is located at this link.

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