The U.S. Small Business Administration is offering small businesses and private, non-profit organizations loan assistance to help alleviate the economic injury caused by COVID-19. In accordance with the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan can be applied for through the SBA.
Economic Injury Disaster Loan highlights:
- Up to $2 million in assistance.
- 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% for small businesses and 2.75% for non-profits.
- Long-term repayments are available to keep the 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.
What will my small business or private non-profit organization need in order to apply for a loan?
- Most recent Federal tax returns for the business or organization
- Most recent financial statements including a balance sheet and profit and loss statement for the previous 2 years
- Personal financial statement (if sole proprietorship) and each principal owning 20% or more of the business
- Schedule of liabilities listing all debts
- SBA Disaster Assistance in Response to the Coronavirus
- SBA Economic Injury Disaster Loan Application
- COVID-19 Checklist from the Ohio Department of Health