Federal SBA Disaster Loans and Emergency Grants (COVID-19)
The U.S. Small Business Administration is offering a low-interest federal disaster loans and a one-time emergency grant of up to $10,000 for working capital to small businesses and private non-profits suffering substantial economic injury as a result of the Coronavirus (COVID-19).
SBA’s Economic Injury Disaster Loans (EIDL) offer up to $2 million in assistance 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. 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.
This program includes an Economic Injury Disaster Emergency Grant for up to $10,000 and is made available, upon request, within 3 days of applying to the EIDL program. The grant does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent, and mortgage payments.
The SBA’s Minnesota District Office has created two important resources to help small businesses understand their Economic Injury Disaster Loans.
1. Please visit this website to understand the loans, download the forms to apply, and much more.
2. If you have questions about the SBA’s EIDL Loans, please watch this 14 minute video to help answer some FAQs.
Paycheck Protection Program
This loan program provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program. Learn more on the SBA website.
Contact the SBA disaster assistance customer service center.