(Posted March 21, 2020)
The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to Ohio small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19)
SBA acted under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act recently signed by President Trump, to declare a disaster following a request received from Ohio Gov. Mike DeWine on March 17.
The disaster declaration makes SBA assistance available in the entire state of Ohio, as well as the contiguous counties in Indiana, Kentucky, Michigan, Pennsylvania and West Virginia.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist Ohio 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),” said Jovita Carranza, SBA administrator.
SBA customer service representatives are 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 (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 that could have been met had the disaster not occurred.
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.
Eligibility for Economic Injury Disaster Loans is based on the financial impact of the Coronavirus (COVID-19). The interest rate is 3.75 percent for small businesses. The interest rate for private nonprofit organizations is 2.75 percent. SBA offers loans with long-term repayments in order 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 email@example.com for more information. 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 and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The deadline to apply for an Economic Injury Disaster Loan is Dec. 21, 2020.
For more information about available SBA resources and services, visit SBA.gov/coronavirus.