AUSTIN (KXAN) — The U.S. Small Business Administration will offer low-interest COVID-19 disaster relief loans, SBA administrator Jovita Carranza said Wednesday.
“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,” Carranza said.
“Additionally, the SBA continues to assist small businesses with counseling and navigating their own preparedness plans through our network of 68 District Offices and numerous Resource Partners located around the country,” he said.
Under state government request, the SBA will issue an Economic Injury Disaster Loan declaration. After that, loans will be available to small businesses and nonprofit organizations in those areas.
Loans up to $2 million will be offered, and can be used to pay fixed debts, payroll, accounts payable or other bills that can’t be paid due to the disaster’s impact.
Interest rates for the loans are 3.75% without credit available elsewhere, and 2.75% for nonprofits.
Terms are on a case-by-case basis, but a repayment plan can be up to 30 years.
For more information on the loan program, call 1-800-659-2955 or email the SBA at firstname.lastname@example.org.