The Small Business Administration (SBA) has announced that low interest federal disaster loans are now available for small businesses in North Carolina.
The loans, at 3.75 percent, are available to businesses that have suffered substantial economic injury as a result of the coronavirus.
The money is being made available because, at the request of Gov. Roy Cooper, President Donald Trump declared the state a disaster area, which made funds available under the Coronavirus Preparedness and Response Supplemental Appropriations Act signed by the president.
This has nothing to do with the $2 trillion economic incentive bill that Congress, so far, has been unable to pass.
SBA Administrator Jovita Carranza said, “SBA is strongly committed to providing the most effective and customer-focused response possible to assist North Carolina small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of the Coronavirus (COVID-19).”
Carranza added, “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 (COVID-19) since Jan. 31, 2020, 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.”
The SBA loans are being offered with long-term repayment plans to keep the payments affordable, up to a maximum of 30 years and are available to small businesses and non-profits that don’t have the financial ability to handle the adverse impact of the coronavirus without hardship.
For non-profit organizations the interest rate is 2.75 percent.
Applicants may apply online or receive additional disaster assistance information at https://disasterloan.sba.gov/ela, by calling the SBA Customer Service Center at 800-659-2955 or by emailing disastercustomerservice@sba.gov
The deadline for applying for these disaster assistance loans is Dec. 18, 2020.
