Economic disaster loans aim to soften losses due to coronavirus

Pennsylvania

HARRISBURG, Pa. (WHTM) – In efforts to mitigate the economic damage that coronavirus has caused, Governor Tom Wolf announced low-interest loans for small businesses and certain nonprofits throughout the state.

“We are incredibly grateful that the [Small Business Administration] recognized the urgency of this situation and granted our request so quickly,” Wolf said in a release. “I encourage our businesses and non-profits to look at the SBA resources available to them and take advantage of this opportunity for financial assistance during this time of uncertainty.

SBA’s Economic Injury Disaster 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 loans offer up to $2 million in assistance for each affected small business. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. 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.

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.

Businesses can start to fill out the forms now online in anticipation of the SBA’s approval at disasterloan.sba.gov/ela

To prepare for the online application, businesses are also encouraged to review the SBA Disaster Business Loan Application forms here.

For more information and updates visit sba.gov.

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