Last week, Congress announced that small businesses that have been impacted by the coronavirus pandemic are eligible for assistance under the U.S. Small Business Administration’s Economic Injury Disaster Loan (EIDL) program. The program will help qualified businesses and non-profit organizations recover from economic losses tied to the abrupt downturn triggered by the COVID-19 disease.
SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance for an eligible small business. “These loans can provide vital support to small businesses to help overcome the temporary loss of revenue,” said Lise Aangeenbrug, OIA executive director. These low-interest 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.
Congress also is expected to soon pass the Stimulus Phase 3 bill, the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Most relevant is the inclusion of $350 billion in loans for small businesses that are provided by banks and guaranteed by the Small Business Administration (SBA). As outlined in the stimulus bill set to pass the Senate today, significant portions of those loans are designed to be forgiven if they are used for maintaining payroll and other eligible business expenses.
Knowing it can be complicated to understand how to access these loans, OIA will host a webinar on Tuesday March 31, at 11 a.m. Mountain Time with an expert from the Small Business Administration to provide guidance on how to access loan money.