The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). The SBA issued a disaster declaration for the state of Iowa as of March 21, 2020. You can find this and more information the program on the SBA website. Some selected program highlights:
• Up to $2 million in assistance.
• 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%.
• Assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere. See SBA website here for more information on eligibility and terms.
How can small businesses and private nonprofits apply?