DES MOINES, Iowa — The U.S. Small Business Administration (SBA) issued a disaster declaration Jan. 31, 2020, for the state of Iowa that allows pandemic-impacted small businesses to apply for low-interest support loans.
The declaration followed Iowa Gov. Kim Reynolds’ successful application for federal funding via the SBA’s Economic Injury Disaster Loan program.
“This SBA Disaster Loan program is vital in assisting our small businesses that have been so heavily impacted by these unprecedented times,” Reynolds said Saturday. “I will continue to work with President Trump and his administration to provide relief to Iowa small businesses as we combat the spread of COVID-19 in Iowa.”
The SBA is now making loans available statewide to small businesses and private, non-profit organizations to help alleviate economic injury caused by the novel coronavirus (COVID-19). The 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.
The loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot 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%. The SBA offers loans with long-term repayments, up to 30 years, in order to keep payments affordable. Terms are determined on a case-by-case basis according to each borrower’s ability to repay.
Applications can be made via the SBA’s website, and applicants can monitor the status of their applications online after submission.
For more information, contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or email email@example.com.