SBA Provides Statewide Emergency Loans to Help Businesses Survive Outbreak

The US Small Business Administration announced Wednesday that it is offering low-interest federal disaster loans in Indiana to provide working capital to struggling businesses during the coronavirus outbreak.

The loans will be available statewide and in many border counties in neighboring states. The Supplemental Coronavirus Preparedness and Response Act signed by President Trump authorized the SBA to offer an additional $ 50 billion in loans nationwide to help small businesses during the pandemic.

Indiana became eligible for SBA aid after Governor Eric Holcomb on Tuesday requested a declaration of disaster for the state.

Loans are available to small businesses, private non-profit organizations of all sizes, small agricultural cooperatives and
small aquaculture businesses “which have been financially impacted as a direct result of the coronavirus (COVID-19) since January 31, 2020,” the SBA said.

Economic disaster loans of up to $ 2 million are to be used “to help meet financial obligations and operating expenses that might have been covered had the disaster not occurred,” he said. SBA administrator Jovita Carranza said in a written statement.

“These loans can be used to pay off fixed debts, salaries, accounts payable and other bills that cannot be paid due to the impact of the disaster,” he said. “Disaster loans can provide vital economic assistance to small businesses to help them overcome the temporary loss of income they experience. “

The interest rate on loans is 3.75% for small businesses and 2.75% for private non-profit organizations, with terms of up to 30 years.

Applicants can apply or learn more online.

In anticipation of the loans being offered, the Indy Chamber on Monday launched a rapid response hub to direct small business owners to various resources.

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