US Small Business Administration provides aid to small businesses impacted by COVID-19

The U.S. Small Business Administration (SBA) issued a release stating they will provide businesses affected by the COVID-19 loans up to $2 million.

The SBA’s Office of Disaster Assistance will work with governors to submit requests for Economic Injury Disaster Loan assistance. Once areas have been designated for relief, affected communities will receive more information.

"The President took bold, decisive action to make our 30 million small businesses more resilient to Coronavirus-related economic disruptions," said administrator Jovita Carranza in a statement. "Small businesses are vital economic engines in every community and state, and they have helped make our economy the strongest in the world. Our agency will work directly with state governors to provide targeted, low-interest disaster recovery loans to small businesses that have been severely impacted by the situation."

Coronavirus coverage

The SBA is offering federal disaster loans for working capital to small businesses that suffer "substantial economic injury" as a result of the spread of COVID-19, the disease caused by coronavirus.

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."

Small businesses without credit available will have an interest rate of 3.75%; businesses with credit available are not eligible. Nonprofits will have an interest rate of 2.75%.

Long-term repayment plans are available, up to 30 years. Terms are decided on a case-by-case basis.