Congress passed an $8.3 billion legislative package on March 4 to help combat the coronavirus. The measure includes a provision that enables the Small Business Administration (SBA) to make an estimated $7 billion in low-cost loans to affected small businesses. The SBA can issue an Economic Injury Disaster Loan declaration upon the request of a state or territory governor. View more details here.
What businesses are eligible for Economic Injury Disaster Loans?
These loans are available to businesses that have suffered substantial economic injury, are unable to obtain credit elsewhere, and are defined as small by SBA size regulations. Loan proceeds can only be used for working capital necessary to enable the business or organization to alleviate the specific economic injury and to resume normal operations.
Small business owners that have been effected by the coronavirus are advised to visit the SBAs website for more information on how to apply for a disaster loan.