For Washington businesses that have been hit hard by the coronavirus, especially those that have been forced to close their doors by government mandate, the prospect of taking out a loan may feel like an unfair burden. Ideally there will be financial support for small businesses from local, state, and/or federal government bodies, but for those businesses in desperate need of cash, a loan may be the only option at this point.
The U.S. Small Business Administration (SBA) has declared a disaster in connection with the Coronavirus, thereby making disaster assistance available to all Washington small businesses that have been economically affected by the Coronavirus through the SBA’s Economic Injury Disaster Loan program.
Washington small businesses, private non-profits, and certain other types of organizations may qualify for these low-interest loans of up to $2 million. The interest rate is 3.75% for small businesses and 2.75% for private non-profits. Note that the SBA offers loans with long-term repayment schedules—up to 30 years—so as to keep payments affordable.
These loans can be used to cover payroll, accounts payable, fixed debts, and other expenses that businesses can’t pay because of the impact of the Coronavirus.
Note that the deadline to apply for this type of loan is December 16, 2020.
Businesses can apply online here at the SBA’s website.