The state of Ohio’s application to the United States Small Business Administration for Economic Injury Disaster Loans (EIDL) was approved. What does this mean to you as a business owner struggling with the effects of the Coronavirus (COVID-19)?
The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of COVID-19. Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available statewide to small businesses and private, non-profit organizations to help alleviate economic injury caused by COVID-19.
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. The interest rate for non-profits is 2.75%. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and we will continue to monitor other programs and resources coming from the federal government to assist businesses. We want to encourage every small business that has been affected by COVID-19 to apply for this assistance.
An informational .pdf on how to apply is available here.
For more information on how to apply, click here.