ATLANTA – The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to North Carolina small businesses suffering substantial economic injury as a result of coronavirus, SBA Administrator Jovita Carranza announced today.
SBA acted under the Coronavirus Preparedness and Response Supplemental Appropriations Act recently signed by the President to declare a disaster following a request received from Gov. Roy Cooper on March 17.
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“SBA is strongly committed to providing the most effective and customer-focused response possible to assist North Carolina small businesses with federal disaster loans,” Carranza said. “We will be swift in our efforts to help these small businesses recover from the financial impacts of the coronavirus.”
SBA customer service representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process.
“Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the coronavirus since Jan. 31, may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” said Carranza.
“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,” Carranza said. “Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing.”
Eligibility for Economic Injury Disaster Loans is based on the financial impact of coronavirus. The interest rate is 3.75% for small businesses. The interest rate for private nonprofit organizations is 2.75%.
SBA offers loans with long-term repayments to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.
The deadline to apply for an Economic Injury Disaster Loan is Dec. 18.
Visit www.SBA.gov/coronavirus for details about available SBA resources and services.
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