In the uncertain times brought about by the COVID-19 pandemic, Johnson & Bell will endeavor to pass along information of interest and, hopefully, benefit to our clients and friends. Here, we share news that, via the Small Business Administration, the federal government has made small businesses in all 50 states eligible for disaster assistance loans related to the coronavirus situation. The following link applies to Illinois Governor Pritzker’s announcement about the program:
- SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
- 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. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.
- SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
Please note: This being a federal program, we imagine the process is not easy or quick, but it may be something to consider for your company or small business.