Financial assistance available to small businesses impacted by COVID-19
Sunday, March 22, 2020
DES MOINES — Gov. Kim Reynolds Saturday today announced that the U.S. Small Business Administration has issued a disaster declaration for the state of Iowa as of Jan. 31 and continuing. The declaration allows pandemic-impacted small businesses to apply for low-interest support loans. The declaration comes after Reynolds submitted a federal funding request via the SBA’s Economic Injury Disaster Loan program.
“This SBA Disaster Loan program is vital in assisting our small businesses that have been so heavily impacted by these unprecedented times,” Reynolds said. “I will continue to work with President (Donald) Trump and his administration to provide relief to Iowa small businesses as we combat the spread of COVID-19 in Iowa.”
The SBA is now making loans available statewide to small businesses and private, nonprofit organizations to help alleviate economic injury caused by the coronavirus. SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
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. The interest rate is 3.75% for small businesses. The interest rate for nonprofits is 2.75%. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
Applications can be found at disasterloan.sba.gov/ela. Applicants can monitor the status of their applications online after submission.
For questions, contact the SBA disaster assistance customer service center at 1-800-659-2955 or email firstname.lastname@example.org.