Federal disaster loans made available

News-Topic (Lenoir, NC)

Mar. 24--The U.S. Small Business Administration has declared a disaster in North Carolina and is offering low-interest federal disaster loans for working capital to North Carolina small businesses or nonprofits suffering substantial economic injury as a result of the coronavirus.

SBA acted under authority of the Coronavirus Preparedness and Response Supplemental Appropriations Act to declare a disaster following a request received from Gov. Roy Cooper on March 17. The disaster declaration makes SBA assistance available in the entire state of North Carolina.

SBA customer service representatives will be available to answer questions about SBA's Economic Injury Disaster Loan program and explain the application process, SBA Administrator Jovita Carranza said in a press release.

"Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the coronavirus since Jan. 31, 2020, 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. "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. 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 (COVID-19). The interest rate is 3.75 percent for small businesses. The interest rate for private nonprofit organizations is 2.75 percent. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years.

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA's Customer Service Center at 800-659-2955 or email [email protected] 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.