The U.S. Small Business Administration (SBA) is rolling out new financial help for local companies and organizations during the COVID-19 crisis. Coronavirus Disaster Relief Loans are available in all 50 states to pay for immediate needs and help businesses keep their doors open. Here are a few key points to keep in mind:
- The low-cost loans are available for use as working capital (not to expand or refinance existing debt).
- The interest rate is 3.75% for small businesses and 2.75% for nonprofits. (Normally SBA loans are only available to for-profit organizations, but the program has been expanded for the current crisis.)
- Long-term repayment arrangements are available, up to a maximum of 30 years.
- Loans are administered directly through the SBA, not local banks.
- It’s important to fill out application forms completely. Missing information may delay processing.
- Visit covid19relief.sba.gov to get updates, view eligibility requirements and submit an application.