The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to the District of Columbia small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19), SBA Administrator Jovita Carranza announced today. SBA acted under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, to declare a disaster following a request received from Mayor Muriel Bowser on March 15, 2020.
The disaster declaration makes SBA assistance available in the District of Columbia; the contiguous counties of Montgomery and Prince George's in Maryland; and Alexandria (City), Arlington County and Fairfax County in Virginia. SBA Customer Service Representatives will be available to answer questions about SBA's Economic Injury Disaster Loan program and explain the application process.
"SBA is strongly committed to providing the most effective and customer-focused response possible to assist District of Columbia small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of the Coronavirus (COVID-19)," said Administrator Carranza.
"Economic Injury Disaster Loans provide vital economic assistance to small businesses to help overcome a temporary loss of revenue. Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises financially impacted as a direct result of COVID-19 since January 31, 2020, may qualify for up to $2 million to help meet financial obligations and operating expenses, which could have been met had the disaster not occurred," said SBA Mid-Atlantic Regional Administrator Steve Bulger, who oversees the SBA's programs in D.C., Virginia, Maryland, Delaware, Pennsylvania and West Virginia. "These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can't be paid because of the disaster."
Eligibility for Economic Injury Disaster Loans is based on the financial impact of COVID-19. The interest rate is 3.75 percent for small businesses, and 2.75% for private non-profit organizations. The SBA offers loans with long-term repayments to keep payments affordable – up to a maximum of 30 years and are available to entities without the ability to offset the adverse impact without hardship.
Applicants may apply online and receive additional disaster assistance information at https://disasterloan.sba.gov/ela. Paper-based application materials may be downloaded for printing at https://disasterloan.sba.gov/ela/Information/PaperForms. Applicants may also call SBA's Customer Service Center at (800) 659-2955 or email firstname.lastname@example.org for help in completing the application process. Individuals who are deaf or hard?of?hearing may call (800) 877-8339. Completed paper-based application packets 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 December 17, 2020.
"One of the best ways for borrowers to increase cash flow is by making a request to delay monthly loan payments," added Antonio Doss, District Director of the SBA-Washington Metropolitan Area District Office. "The SBA makes that option available on existing 7(a) Business Loans, 504 Business Loans and Microloans." Borrowers must ask their lenders directly for such deferrals, which may be granted for a period of up to six months.
Our Washington Metropolitan Area District Office team, funded resource partners (SCORE, Small Business Development Centers, Veterans Business Outreach Centers, and Women's Business Centers), and participating lenders want to help you successfully navigate through this period of the COVID-19 epidemic. Learn more about SBA's programs and services, including free one-on-one business counseling that may be offered remotely, by accessing the 2020 Small Business Resource Guide for the Washington Metropolitan Area at https://www.sba.gov/sites/default/files/files/resourceguide_3106.pdf.