As part of the Coronavirus Preparedness and Response Supplemental Appropriations Act, which was signed by President Trump on March 6, 2020, the Small Business Administration (SBA) was authorized to provide low-interest loans to U.S. small businesses and nonprofits suffering substantial economic injury as a result of the COVID-19 pandemic.
The Economic Injury Disaster Loans can provide up to $2 million in assistance and may be used to pay fixed debts, payroll, and bills that can’t be paid due to the negative financial impact of Coronavirus. The loans carry interest rates of 3.75% for small businesses and 2.75% for nonprofits. Repayment terms may be stretched up to 30 years in order to keep payments affordable and are determined on a case-by-case basis at the time of origination.
To learn more about the Economic Injury Disaster Loan and to apply, visit the Small Business Administration website.