Rep. Young: Small Business Administration Approves Economic Injury Disaster Loans for Alaska

WASHINGTON, March 23 -- Rep. Don Young, R-Alaska, issued the following news release:

The Alaska Congressional Delegation announced the availability of economic injury disaster loans for Alaska small businesses impacted by the COVID-19 outbreak. The Small Business Administration (SBA) is currently offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the coronavirus, pursuant to the recently passed Coronavirus Preparedness and Response Supplemental Appropriations Act.

"We are in an unprecedented time with a pandemic impacting the everyday lives of Americans, including Alaskans,"said the Congressional Delegation. "In just a matter of days, we've heard from Alaskan business owners who have been forced to make drastic changes, including large layoffs. We are pleased to see that the SBA is going help provide much needed low-interest working capital for our local small business as they navigate this uncertain time. While there is much work ahead, we continue to work across all sectors of the federal government to provide the needed assistance that is and will be required for everyone impacted by this terrible virus. These loans, along with other efforts currently being negotiated in Congress, will help to ensure that our economy will be able to weather this storm."

BACKGROUND:

* An Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small businesses and private, non-profit organizations in designated areas of a state or territory to help alleviate economic injury caused by the COVID-19.

* SBA's Economic Injury Disaster Loans offer up to $2 million in assistance per small business and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

* 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. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. 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's Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government's coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible.

* For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail [email protected].

* Visit https://disasterloan.sba.gov/ela/ for more information.