Small businesses in Alaska suffering substantial economic loss as a result of the novel coronavirus pandemic are now eligible to apply for U.S. Small Business Administration low-interest federal disaster loans for working capital.
The SBA Economic Injury Disaster Loan program, approved in mid-March, offers up to $2 million in assistance to small businesses to overcome the temporary loss of revenue due to the virus spreading worldwide.
These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the impact of the pandemic. The interest rate is 3.75 percent for small businesses without credit available elsewhere. Businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75 percent.
The SBA also offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terme are determined on a case-by-case basis, based on each borrower’s ability to repay.
These loans are just one piece of the mow expanded focus of the federal governments coordinated response to the pandemic, the SBA said.
Businesses interested in applying for these loans may apply directly to the SBA at sba.gov/funding-programs/disaster-assistance.
Additional information is available by calling the SBA disaster assistance customer service center at 1-800-659-2955 or disastercustomerservice@sba.gov.
