SBA Offers Disaster Assistance Loans to Utah Small Businesses Economically Impacted by the Coronavirus (COVID-19)
As of today, the U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to Utah small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). SBA acted under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by President Trump, to declare a disaster following a request received from Utah Gov. Gary R. Herbert on March 16.
The disaster declaration makes SBA assistance available in all 29 Utah counties.
“SBA is hard at work delivering much needed relief to small business owners across the state of Utah, through the agency’s Economic Injury Disaster Loans (EIDL) and other resources. These loans will be instrumental in helping business owners to cover many business expenses, such as paying fixed debts, covering payroll, accounts payable and other bills that otherwise threaten businesses due to the COVID-19 pandemic. SBA’s disaster loans will provide crucial economic assistance to Utah’s small businesses in order to combat the temporary loss of revenue they may now be experiencing,” SBA Utah District Director Marla Trollan said.
“SBA is fully engaged in providing the most complete and timely response to the state’s business community. Our team is working diligently to deliver the full range of programs and resources available through the Administration. We hope to help small businesses stay in the fight and minimize the financial impacts of COVID-19,” Trollan went on to say.
SBA Customer Service Representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process. 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 (COVID-19) since Jan. 31, 2020, may qualify and are encouraged to apply 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.
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 non-profit 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 and are available to entities without the financial ability to offset the adverse impact without hardship.