Disaster Loans Now Available for Small Businesses and Nonprofits

The U.S. Small Business Administration (SBA)  just announced that is now able to offer Economic Injury Disaster Loans to small businesses and nonprofits affected by the COVID-19 pandemic. Business owners are encouraged to begin the application process as soon as possible . The online application is the fastest and easiest method. However, paper forms are also available from the same website.

Applying for an SBA disaster loan is free and business owners are not obligated to close on the loan by just applying.  Once an application is submitted, the process is expected to take about three weeks.  There is no prepayment penalty, so if the economic situation changes, borrowers can pay off the loan early to avoid interest.  The loans are funded directly by the U.S. Treasury. Current terms are up to 30 years at 3.75% interest for small businesses and 2.75% for nonprofits. Loan amounts are determined by the SBA.

If you have questions on how the loan can help your business, or how to allocate funding once received, Clifford Cochran, Director of the Kenai Peninsula Small Business Development Center is available to help.  He can be reached at (907) 260-5643 or cliff.cochran@aksbdc.org. 

For technical questions on SBA Disaster Loans or the application, please contact the SBA Customer Service Center at 1-800-659-2955 or email disastercustomerservice@sba.gov.
 
Stay healthy and safe.