by Gregory S. Dowell

March 23, 2020

Small businesses that have suffered substantial economic injury due to COVID-19 may apply for Federal disaster relief loans from the Small Business Administration (SBA). Loans will be available to small businesses and nonprofits to help alleviate the economic impact of COVID-19. A few important notes about these loans:

1. Small business owners and nonprofits in all US states and territories are eligible for these loans.
2. These loans can be made for up to $2 million.
3. The loans can be used to pay for fixed debts, payroll, accounts payable, and other bills that businesses and nonprofits can not pay, due to the impact of the virus.
4. The loans cannot be used to cover lost profits.
5. The interest rates on these loans is 3.75% for small business and 2.75% for nonprofits.
6. Loans can go up to a maximum of 30 years, with terms of the loans determined on a case-by-case basis, considering each borrower’s ability to pay.
7. Available to employers with 500 or fewer employees.
8. While the loans offer a one-year deferral of payment, the interest begins accruing on the loans immediately.

Applications for these loans is made online at disasterloan.sba.gov/ela. Due to virus exposure concerns, the SBA is moving all assistance online, where webinars and training videos may be accessed as well.