The SBA is offering low-interest federal disaster loans for working capital to small businesses impacted by the Coronavirus
The SBA is offering low-interest federal disaster loans for working capital to small businesses impacted by the Coronavirus. Such loans are available in designated states and territories. Small businesses can borrow up to $2 million at a rate of 3.75% and the funds can be used for debt payments, payroll, accounts payable, and other bills. The SBA prefers that loans over $25,000 are collateralized with real estate, although lack of collateral is not a reason for declining a loan. Small businesses with existing disaster loans from the SBA can defer payments on such loans until December 31, 2020, without requesting a deferment.
The application and all required forms can be completed online. Paper applications can be downloaded here. The SBA customer service center can be reached at 800-659-2955. Please note that the SBA is inundated with applications, causing slowness of the online application and delays in response time.