On March 6, President Trump signed the Coronavirus Preparedness and Response Supplemental Appropriations Act, an $8.3 billion emergency spending bill that, among many other things, gave the Small Business Administration the ability to issue an economic injury disaster loan declaration pertaining to coronavirus.
The loans offer up to $2 million in assistance for a small business. These low-interest federal disaster loans for working capital can provide economic support to small businesses to help overcome the temporary loss of revenue for small businesses suffering substantial economic injury as a result of the coronavirus.
The loans are made available upon a request received from a state’s or territory’s governor, at which point the SBA will issue the loans under its own authority. The funds 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, while the interest rate for nonprofits is 2.75%.
Find more information on the SBA’s economic injury disaster loans at: SBA.gov/Disaster.