Small Business Administration offers low-interest, long term Disaster Loans.
The SBA will work directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19). The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
Eligibility and Terms
The interest rate on EIDLs will not exceed 4 percent per year. The term of these loans will not exceed 30 years. The repayment term will be determined by your ability to repay the loan.
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 non-profits is 2.75%.
The primary page for information about this program can be found here https://disasterloan.sba.gov/ela/Information/Index
Applications can be submitted online or completed on paper forms and mailed in. Start that process here https://disasterloan.sba.gov/ela/Information/ApplyOnline
Be sure to check that your state and county are on the list of “Current Declared Disasters.” You are not eligible if your state and county are not a declared disaster area. The list can be found here https://disasterloan.sba.gov/ela/Declarations Los Angeles and Orange counties in California are on the list. This covers the majority of our clients, but not all. If you are not located in either of those two areas, be sure to check the list.