SBA Disaster Loans available for pandemic-impacted businesses

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Gov. Kim Reynolds on March 21 announced that the U.S. Small Business Administration (SBA) has issued a disaster declaration for the state of Iowa as of Jan. 31, 2020 and continuing. The declaration allows pandemic-impacted small businesses to apply for low-interest support loans. The declaration comes after the governor submitted a federal funding request via the SBA’s Economic Injury Disaster Loan program.

The SBA is now making loans available statewide to small businesses and private, non-profit organizations to help alleviate economic injury caused by the Coronavirus (COVID-19). SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance 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. The interest rate for non-profits is 2.75 percent. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years.

Applications can be made via the SBA’s website: https://disasterloan.sba.gov/ela/. Applicants can monitor the status of their applications online after submission. Information: (800) 659-2955, or email  disastercustomerservice@sba.gov.

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