There Are More Loans Than Ever for Struggling Small Businesses

If you have a small business currently being affected by the new coronavirus (COVID-19), your state, local, or federal government may be able to help tide you over.

The U.S. Small Business Administration is offering low-interest loans of up to $2 million for small businesses that have suffered economic injury because of the pandemic.

The loans are available to states in which the governors have submitted relief requests. The funds may be used to cover fixed debts, payroll, accounts payable, and other bills that businesses may have issues paying. The interest rate is 3.75% for small businesses and 2.75% for nonprofits.

They can be repaid on a long-term time frame, up to a maximum of 30 years.

Terms are determined on a case-by-case basis, calculated upon each borrower’s ability to repay.

Businesses can apply for a disaster loan here. Applications require the that business supply relevant information about its operations, including recent tax returns.

The move came after Congress and the president increased funding for the SBA loan program to $50 billion, more than double its current amount.

Businesses can get more information by calling 800-659-2955 or emailing disastercustomerservice@sba.gov.

If 2.75% is a little much, some localities are offering zero-interest loans to hard-hit small businesses.

In New York City, Mayor Bill de Blasio announced that businesses with fewer than 100 employees that have seen sales decrease 25% or more will be eligible for zero-interest loans of up to $75,000 from New York City.

New York City is also offering small businesses with fewer than five employees a grant to cover 40% of payroll costs for two months to help retain employees.

Businesses can apply for these loans and grants here. Other information about financial assistance for New York City small businesses can be seen here.

Other towns and cities, such as Sacramento, Calif., are also offering zero-interest loans to small businesses.

The Families First Coronavirus Response Act, which was signed into law by President Trump on Wednesday, offers tax credits to small businesses that cover wages paid to employees who take time off under the sick or family leave programs.

Inc. has a summary of resources available to small businesses here. Jewelers of America’s list of coronavirus resources can be seen here.

(Image courtesy of the Small Business Administration)

Follow JCK on Instagram: @jckmagazine
Follow JCK on Twitter: @jckmagazine
Follow JCK on Facebook: @jckmagazine

JCK News Director