We have received several inquiries about the SBA Economic Injury Disaster Loan program. Announced on March 20, 2020, in response to a request from Governor Henry McMaster for a disaster declaration, the U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for South Carolina small businesses suffering substantial economic injury resulting from COVID-19. The disaster declaration makes SBA assistance available in the entire state of S.C.
Any business with less than 500 employees qualifies as a small business. These are working capital loans currently up to $2 million to help overcome the temporary loss of revenue small businesses are experiencing. Interest rates are 3.75% for small businesses and 2.75% for non-profits with up to a 30-year term. Unlike other “traditional” SBA loans where a bank or other financial institution is an intermediary, this loan comes directly from the SBA. Details can be found in the SBA’s Fact Sheet on the loan program. Businesses can apply online at www.sba.gov/disaster.
As you have likely seen, the $1.8 Trillion “Phase 3” stimulus package will be voted on shorty. In this bill, we believe additional resources and assistance will be provided to small businesses. We will keep you apprised on new developments and programs that can help your business during this crisis.
A short video and whitepaper on the SBA loan program can be found here.