RICHMOND, Va. – Disaster assistance will be available for small businesses in Virginia, following a request from Governor Ralph Northam to the U.S. Small Business Administration.
According to the SBA, they offer low-interest federal disaster working capital loans to small businesses suffering substantial economic injury as a result of the coronavirus.
A release from the administration said the SBA acted under authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act signed by President Donald Trump and the request sent by Gov. Northam. The disaster declaration will make SBA Economic Injury Disaster Loans (EIDL) available through Virginia.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of COVID-19,” said Administrator Carranza. “SBA Customer Service Representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process.”
Eligibility is based on the financial impact of the virus. The interest rate is 3.75 percent for small businesses, and 2.75 percent for private non-profit organizations, according to the SBA. Long-term repayment plans are also available, with a maximum of 30 years.
“Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing,” said SBA Mid-Atlantic Regional Administrator Steve Bulger, who oversees SBA programs and services in Virginia, West Virginia, Pennsylvania, Delaware, Maryland and Washington, D.C. “Small businesses, private nonprofit organizations of any size, small agricultural cooperatives and aquaculture enterprises financially impacted as a direct result of COVID-19 since January 31, 2020, may qualify for EIDL of up to $2 million to help meet financial obligations which could have been met had the disaster not occurred. 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.”
Those wishing to apply or receive additional information can visit the SBA's Disaster Loan Assistance website. You can also call customer service at (800) 659-2955 or email them at email@example.com.
Individuals who are deaf or hard-of-hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing & Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The application deadline is December 21, 2020.
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