Included in H.R. 6074, the Coronavirus Preparedness and Response Supplemental Appropriations Act (known as Package 1), which Senator Tillis supported, is funding to enable the Small Business Administration (SBA) to make up to $7 billion worth of small business loans.
SBA Economic Injury Disaster Loan Program
• Small businesses suffering substantial economic injury from the Coronavirus (COVID-19) may be eligible to receive low-interest federal disaster loans through the SBA
• Specifically, SBA’s Economic Injury Disaster Loans offer:
o Up to $2 million in assistance to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact
o The interest rate is 3.75% for small businesses and 2.75% for non-profits
o SBA offers long-term repayment to keep payments affordable, up to a maximum of 30 years.
Terms are determined case-by-case, based upon borrower’s ability to repay
• Following a request received from a state’s or territory’s Governor, SBA will issue under its own authority, an Economic Injury Disaster Loan declaration allowing these loans to begin flowing to impacted businesses
• On March 17, 2020, Senator Tillis, along with Representatives Hudson and Price, sent a letter to SBA urging them to consider North Carolina’s request as quickly as possible: approval was granted the following day on March 18th
Additional information and available at https://www.sba.gov/page/coronavirus-covid-19-small-businessguidance-loan-resources