Need help with payroll, overhead, accounts payable? The U.S. Small Business Administration says it can help.
The SBA is offering low-interest federal disaster loans for working capital to small businesses in New Jersey suffering substantial economic injury as a result of the coronavirus, SBA Administrator Jovita Carranza announced Wednesday evening.
“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,” Carranza said. “Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing.”
Eligibility for Economic Injury Disaster Loans is based on the financial impact of the coronavirus. The interest rate is 3.75% for small businesses. The interest rate for private nonprofit organizations is 2.75%.
Carranza said the SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist New Jersey small businesses with federal disaster loans,” Carranza said. “We will be swift in our efforts to help these small businesses recover from the financial impacts of the coronavirus.”
Carranza said SBA customer service representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process at (800) 659-2955.
“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,” Carranza said.
The SBA acted under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by President Donald Trump, to declare a disaster following a request received from Gov. Phil Murphy on Tuesday.
The disaster declaration makes SBA assistance available in the entire state of New Jersey.
Where to go for more information
Applicants may apply online, receive additional disaster assistance information and download applications at disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at 800-659-2955 or email firstname.lastname@example.org for more information on SBA disaster assistance. 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 and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The deadline to apply for an Economic Injury Disaster Loan is Dec. 18.
For more information about coronavirus, please visit: coronavirus.gov.
For more information about available SBA resources and services, please visit: SBA.gov/coronavirus.