RALEIGH – Small businesses across the economic landscape – including startups and emerging companies- of North Carolina are now eligible for loans up to $2 million from the US Small Business Administration.
However, companies have to be approved by the SBA and interest rates will be up to 4 percent,
Gov. Roy Cooper announced Thursday that the US SBA had approved his “disaster declaration” request, citing the economic impact of the coronavirus.
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“Many small businesses are desperate right now and this SBA approval will help,” Cooper said in a statement. “Even more is needed and we will continue to push for additional assistance while we work to protect the health of North Carolinians.”
“The SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred,” the federal agency says at its website.
“Your loan amount will be based on your actual economic injury and your company’s financial needs, regardless of whether the business suffered any property damage.”
Small businesses can apply directly for the loans at this website.
Businesses also can get information through the SBA’s Customer Service Center at 1-800-659-2955 or 1-800-877-8339 for the deaf and hard-of-hearing, or by emailing email@example.com.
Loan application forms can also be downloaded at disasterloan.sba.gov
Criteria for Economic Injury Disaster Loans
Information from the SBA website regarding loan criteria:
If you have suffered substantial economic injury and are one of the following types of businesses located in a declared disaster area, you may be eligible for an SBA Economic Injury Disaster Loan (EIDL):
- Small Business
- Small agricultural cooperative
- Most private nonprofit organizations
Loan Amounts and Use
Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster.
The SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Your loan amount will be based on your actual economic injury and your company’s financial needs, regardless of whether the business suffered any property damage.
Eligibility and Terms
The interest rate on EIDLs will not exceed 4 percent per year. The term of these loans will not exceed 30 years. The repayment term will be determined by your ability to repay the loan.
EIDL assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere.
A business may qualify for both an EIDL and a physical disaster loan.
The maximum combined loan amount is $2 million.