PRESS OFFICE
Release Date: March 12, 2020 Contact: Jennifer.Kelly@sba.gov (202)205-7036
Release Number: 20-24 Follow us on: Twitter, Facebook, Blogs & Instagram
SBA To Provide Small Businesses Impacted by Coronavirus (COVID-19) Up to $2 Million in Disaster Assistance Loans
WASHINGTON – SBA Administrator Jovita Carranza issued the following statement today in
response to the President’s address to the nation:
“The President took bold, decisive action to make our 30 million small businesses more
resilient to Coronavirus-related economic disruptions. Small businesses are vital economic
engines in every community and state, and they have helped make our economy the
strongest in the world. Our Agency will work directly with state Governors to provide
targeted, low-interest disaster recovery loans to small businesses that have been severely
impacted by the situation. Additionally, the SBA continues to assist small businesses with
counseling and navigating their own preparedness plans through our network of 68 District
Offices and numerous Resource Partners located around the country. The SBA will continue
to provide every small business with the most effective and customer-focused response
possible during these times of uncertainty.”
Process for Accessing SBA’s Coronavirus (COVID-19) Disaster Relief Lending
• The U.S. Small Business Administration is offering designated states and territories low interest federal disaster loans for working capital to small businesses suffering substantial
economic injury as a result of the Coronavirus (COVID-19). Upon a request received from a
state’s or territory’s Governor, SBA will issue under its own authority, as provided by the
Coronavirus Preparedness and Response Supplemental Appropriations Act that was
recently signed by the President, an Economic Injury Disaster Loan declaration.
• Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes
loans available to small businesses and private, non-profit organizations in designated
areas of a state or territory to help alleviate economic injury caused by the Coronavirus
(COVID-19).
• SBA’s Office of Disaster Assistance will coordinate with the state’s or territory’s Governor
to submit the request for Economic Injury Disaster Loan assistance.
• Once a declaration is made for designated areas within a state, the information on the
application process for Economic Injury Disaster Loan assistance will be made available
to all affected communities.
• SBA’s Economic Injury Disaster Loans 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 without credit available elsewhere; businesses with credit available elsewhere
are not eligible. 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.
• SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the
federal government’s coordinated response, and the SBA is strongly committed to
providing the most effective and customer-focused response possible.
For additional information, please contact the SBA disaster assistance customer service
center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail
disastercustomerservice@sba.gov.