SBA disaster assistance in response to the coronavirus

Special to The SUN
With the recent State of Emergency declaration to combat COVID-19’s spread in Colorado, we are dedicating our outreach to support the health, safety and economic prosperity of small businesses across the state. The State of Emergency declaration is an important step to access key resources to protect Coloradans and our economy.
The U.S. Small Business Administration (SBA) is offering designated state and territories low-interest federal disaster loans for the 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 under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the president, an Economic Injury Disaster Loan declaration.
Any such Economic Injury Disaster Loan assistance declaration issues by the SBA makes loans available to small businesses and private nonprofit organizations in designated areas of a state or territory to help alleviate economic injury caused by coronavirus.
SBA’s Office of Disaster Assistance will coordinate with the state’s or territory’s governor to submit the request for Economic Injury Disaster Loan assistance.
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 as well as updated on its website: SBA.gov/disaster.
SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance per small business and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
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 percent for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for nonprofits is 2.75 percent.
SBA offers loans with long-term repayments in order to keep payments affordable, up to 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 the SBA is strongly committed to providing the most effective and customer-focused response possible.
For additional information, please contact the SBA disaster assistance customer service center. Call (800) 659-1955 (TTY: (800) 877-8339) or email disastercustomerservice@sba.gov.
Please note that although there is a “How To Apply” button on the SBA link, it may not be activated yet for this situation because the disaster declaration process isn’t completed yet. Again, we will communicate better information when available.
From our experience with the 2013 northern Colorado flood, we do recommend you gather key financial documents if you think you might need to apply for a loan:
• Federal tax returns for your business for the last three years.
• Personal federal tax returns for the last three years.
• A personal financial statement.
• Articles of incorporation.
• A business plan with financial projections might be helpful, but probably not required.
We are here to support our local businesses and entrepreneurs during these very challenging times. We will do our best to communicate useful business resources, and provide support, to mitigate the impacts of this health situation.

 

This story was posted on March 21, 2020.