Assisting Small Businesses Affected by COVID-19
For this week’s column, I want to focus on how the COVID-19 situation is affecting small businesses in our state. I believe this pandemic has taken a toll on our state’s business community, and unfortunately, it has even caused people to lose their jobs.
Earlier this month, the governor, along with the Missouri Department of Economic Development and the State Emergency Management Agency, requested assistance for businesses from the U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loan Program. The SBA approved this request, and numerous businesses throughout Missouri now have access to this loan program.
The SBA’s Economic Injury Disaster Loan Program provides targeted, low-interest disaster recovery loans for small businesses that have been severely impacted by the spread of COVID-19. The loans can be used to cover small business operating expenses after a declared disaster.
All small businesses in the U.S. are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The program also provides small businesses with working capital loans of up to $2 million to assist with the temporary loss of revenue they are experiencing due to the COVID-19 situation in our state.
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 percent for small businesses. The interest rate for nonprofits is 2.75 percent. The SBA is offering 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.
As an employee of a small business, I understand the devastating effects this pandemic has had on our state’s business community. Whether you work for a big company or a local small business, the COVID-19 virus has taken a toll on our economy. I believe these disaster loans offered by the SBA have the potential to provide a lifeline to businesses throughout our state. If your business has been affected by the COVID-19 outbreak, please visit disasterloan.sba.gov/ela/ to learn more about this important loan program.
Contact Me
I always appreciate hearing your comments, opinions and concerns. Please feel free to contact me in Jefferson City at (573) 751-2459. You may write me at Wayne Wallingford, Missouri Senate, State Capitol, Jefferson City, MO 65101, or email at wayne.wallingford@senate.mo.gov or www.senate.mo.gov/wallingford.
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