The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses in Los Angeles, Orange and 33 other California counties that are economically impacted by the coronavirus pandemic.
Small businesses, private nonprofit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of COVID-19 since Jan. 31 may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred, according to SBA Administrator Jovita Carranza.
“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. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing,” Carranza said.
Kevin McGowan, director of the Los Angeles County Office of Emergency Management, urged business operators to apply if they need help.
“Offering support and disaster relief is a critical government function,” McGowan said. “The devastating economic impact of COVID-19 is palpable. There is a great need for economic support during the coronavirus disaster, and SBA federal disaster loans are an excellent resource for small business owners.”
The interest rate on the disaster loans is 3.75% for small businesses and 2.75% for private nonprofit organizations. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela.
Applicants may also call SBA’s Customer Service Center at 800-659-2955 or email [email protected] for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing should call 800-877- 8339.
Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX, 76155.
The deadline to apply for an Economic Injury Disaster Loan is Dec. 16.
For more information about available SBA resources and services, go to SBA.gov/coronavirus.
