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.
On March 17, Governor Brian P. Kemp submitted a letter to the U.S. Small Business Administration, requesting SBA Director Kem Fleming to issue a declaration to provide SBA Economic Injury Disaster Loans to the State of Georgia.
"Small businesses in Georgia are enduring severe economic hardship stemming from the spread of COVID-19. The effects of this pandemic vary by industry and economic sector, but it is clear that we must act," said Governor Kemp. "Georgia small businesses are the backbone of our state and national economies, and we look forward to working with SBA and our federal partners to support them in the weeks and months to come."
The 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. The interest rate for non-profits is 2.75%.
SBA offers 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.