The U.S. Small Business Administration (SBA) announced it has made the entire state of California eligible for its low-interest Economic Injury Disaster Loans.
Congressman Doug LaMalfa, Republican of Richvale said when the loans were first announced, the SBA’s online application was not allowing small businesses in certain Northern California counties to apply, but the issue has since been fixed.
“Since the beginning, my office has been working to make sure all counties in our district were included in SBA’s Economic Injury Disaster Loan program. While I was frustrated at the technical issues that made it difficult for small businesses in Northern California to apply for these loans, the SBA has since fixed their website and the application is now available,” he added. “We still must work to see that they are processed timely. Our local economies are dependent on the prosperity of our small businesses, and I encourage all who are in need to apply.”
Economic Injury Disaster Loans provide small businesses with working capital loans of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue due to the coronavirus. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid due to the disaster’s impact. The process to obtain an Economic Injury Disaster Loan is more streamlined than the standard 7(a) loan from the SBA so businesses can receive the assistance as quickly as possible.
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.
SBA acted under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, to declare a disaster following a request received from Gov. Gavin Newsom’s designated representative, Director Mark S. Ghilarducci of the Governor’s Office of Emergency Services earlier this month.
To apply, visit the SBA website https://www.sba.gov/funding-programs/disaster-assistance. SBA customer service representatives are available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process.
In addition, anyone needing assistance with a SBA Economic Injury Loan application or have any other COVID-19 related issues, can contact LaMalfa’s office at (202) 525-8538.
LaMalfa represents California’s First Congressional District, including Butte, Glenn, Lassen, Modoc, Nevada, Placer, Plumas, Shasta, Sierra, Siskiyou and Tehama Counties.