AUSTIN (KXAN) – The U.S. Small Business Administration will offer low-interest loans for COVID-19 disaster relief, SBA administrator Jovita Carranza said on Wednesday.
“Our agency will work directly with state governors to provide targeted, low-interest disaster recovery loans to small businesses that have been severely affected by the situation,” Carranza said.
“Additionally, the SBA continues to assist small businesses by providing guidance and leading their own preparedness plans through our network of 68 district offices and numerous resource partners located across the country,” a- he declared.
At the request of the state government, the SBA will issue an Economic Disaster Loan Statement. After that, loans will be available for small businesses and non-profit organizations in these areas.
Loans of up to $ 2 million will be offered and can be used to pay fixed debts, payroll, accounts payable or other bills that cannot be paid due to the impact of the disaster.
Interest rates for bad credit loans are 3.75% with no credit available elsewhere, and 2.75% for nonprofits.
Conditions are on a case-by-case basis, but a repayment plan can last up to 30 years.
For more information on the loan program, call 1-800-659-2955 or email the SBA at Disastercustomerservice@sba.gov.