The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to New York small businesses suffering substantial economic injury as a result of the coronavirus (COVID-19) outbreak.
SBA Administrator Jovita Carranza said that the SBA acted under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by President Donald Trump. The president declared a disaster following a request received from Gov. Andrew M. Cuomo on March 17.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist New York 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),” Carranza said.
SBA customer service representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process.
“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 of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” Carranza said. “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.”
Eligibility for the loans is based on the financial impact of the coronavirus (COVID19). The interest rate is 3.75 percent for small businesses. The interest rate for private nonprofit organizations is 2.75 percent. 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.
—Submitted by the Small Business Administration