The U.S. Small Business Administration (SBA) announced on March 20th that it would begin offering long-term, low-interest loans to help small businesses affected by COVID-19, also known as the Coronavirus. These low-interest loans are part of the Economic Injury Disaster Loan (EIDL) and are designed to add working capital to small businesses going through economic hardship due to COVID-19.
The Economic Injury Disaster Loan Assistance declaration issued by the SBA makes loans available to states and territories whose governors approve the help. On Friday, March 20th, Governor Greg Abbot of Texas approved the loan program to help small businesses and non-profit organizations.
Governor Abbot spoke about the issue.
“The overriding message of this time in history is that we are all in this together. From people responsibly remaining at home to protect themselves and their communities to the small businesses adapting to serve them, Texans are showing their willingness to serve the greater good and that’s why we’ll overcome this together. That’s what Texans do. We are not only Texas Strong, we are #TexasBizStrong.”
Disaster Assistance Guidelines
Here are a few things to know about the loans:
- They may be used to pay fixed debts, payroll, accounts payable, and other bills.
- The interest rate will be 3.75% for small businesses without credit available elsewhere and 2.75% for non-profits. Businesses with credit available elsewhere are not eligible for the low-interest loans.
- The SBA offers long-term payment options, up to a maximum of 30 years. Terms will be determined on a case-by-case scenario based on each business’s ability to repay the loan.
- They can total up to $2 million.
The Alamo EDC is committed to helping out small businesses in our community. To apply, please visit the SBA Economic Injury Disaster Loan page. Contact us online or by calling (956) 787-6622 for more information.