SBA to offer emergency assistance loans

Loans may pay fixed debts, payroll, accounts payable and other bills that can't be paid because of coronavirus
Mar 16, 2020

The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the coronavirus.

Upon a request received from a state’s or territory’s governor, SBA will issue an Economic Injury Disaster Loan declaration, making loans available to small businesses and private, nonprofit organizations, in designated areas of a state or territory, to help alleviate economic injury caused by COVID-19.

The SBA will make the declaration under its own authority as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the president. Once a declaration is made for designated areas within a state, the information on the application process for Economic Injury Disaster Loan assistance will be made available to all affected communities.

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. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for nonprofits is 2.75%.

For more information, contact the SBA disaster assistance customer service center at 800-659-2955 (TTY: 1-800-877-8339) or email disastercustomerservice@sba.gov.

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