The U.S. Small Business Administration (SBA) 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.
The MA Emergency Management Agency (MEMA) and Baker-Polito Administration are working closely with the U.S. SBA to activate the Economic Injury Disaster Loan (EIDL) program which would provide assistance to eligible businesses and non-profits impacted by COVID-19.
The EIDL program will provide small businesses with working capital loans of up to $2 million to help meet financial obligations and operating expenses until normal operations resume.
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%.
The first step in this process is to meet a minimum threshold of affected businesses within MA:
- Affected small businesses and non-profits should download, complete, and submit the SBA EIDL Worksheet ( https://lnkd.in/ewF7VBy ) & Instructions to expedite activation of the EIDL program.
- Completed forms can be submitted by email to Disaster.Recovery@mass.gov or by fax to (508) 820-1401. If you fax the form, please include your e-mail. Please note, this initial survey form is not a SBA loan application.
- When the EIDL program is activated, the small businesses will be contacted to apply directly to SBA’s Disaster Assistance webpage. This website will be updated with application details. For questions, please contact Disaster.Recovery@mass.gov.