SBA Economic Injury Disaster Loans
The U.S. Small Business Administration is providing low-interest federal disaster loans to small businesses suffering substantial injury as a result of the Coronavirus (COVID-19). SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance per small business and provide support to help you overcome temporary loss of revenue.
These loans may be used to cover fixed debts, payroll, accounts payable and other expenses that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for eligible businesses (who can’t access credit elsewhere), with a long term to keep payments affordable. Terms are determined on a case-by-case basis up to a maximum of 30 years, based on each borrower’s ability to repay.
TEDC has learned from SBA Headquarters that your available loan amount may equal up to six (6) months of your company’s Gross Profit. Personal credit scores matter! Once approved, your first loan disbursement should be credited to your business bank account in thirty (30) days.
Members of Team TEDC are available to answer questions and help you complete the SBA disaster loan process. Please keep in mind that you are not required to hire a loan packager, but TEDC is available to assist.