RICHMOND, Va. – The U.S. Small Business Administration (SBA) is now offering low-interest federal disaster working capital loans to Virginia small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
In providing these loans, the SBA acted under authority of the Coronavirus Preparedness and Response Supplemental Appropriations Act recently signed by the President, following a request received from Virginia Governor Ralph Northam. The disaster declaration makes SBA Economic Injury Disaster Loans assistance available in the entire commonwealth.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of COVID-19,” said SBA Administrator Jovita Carranza. “SBA Customer Service Representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process.”
Eligibility is based on the financial impact of the COVID-19. The interest rate is 3.75% for small businesses and 2.75% for private non-profit organizations. SBA offers loans with long-term repayments up to a maximum of 30 years to keep payments affordable. The loans are available to entities without the financial ability to offset the adverse impact without hardship.
“Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing,” said SBA Mid-Atlantic Regional Administrator Steve Bulger, who oversees SBA programs and services in Virginia, West Virginia, Pennsylvania, Delaware, Maryland and Washington, D.C.
“Small businesses, private nonprofit organizations of any size, small agricultural cooperatives and aquaculture enterprises financially impacted as a direct result of COVID-19 since Jan. 31, 2020, may qualify for (EIDL) of up to $2M to help meet financial obligations which could have been met had the disaster not occurred,” Bulger said. “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.”
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 ator email firstname.lastname@example.org for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing & Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The deadline to apply for these loans is Dec. 21, 2020.
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.