News & Views
U.S. extends low-cost loans to coronavirus-affected small businesses
By Mari-Len De Guzman
The U.S. Small Business Administration is extending some financial assistance to small businesses and non-profits that have been severely affected by the continuing spread of the coronavirus (Covid-19).
The SBA will be working directly with state governors to provide targeted, low-interest loans to affected businesses and organizations, a news update from the U.S. National Aquaculture Association (NAA) said.
As of 7am on Thursday, March 19th, the NAA said, “the SBA’s Economic Injury Disaster Loan program is available in the states of Alabama, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Montana, New Hampshire, New Jersey, New Mexico, New York, Nevada, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington and Wyoming to provide small businesses, including small aquaculture businesses, with working capital loans of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue they are experiencing.”
The 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. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay, the NAA said.
For up-to-date information or to apply for assistance, visit the SBA website.