More Information on SBA Economic Loans For Roanoke Businesses

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The SBA’s Economic Injury Disaster Loan Program (or working capital loan program) is now accepting applications.
These loans are available to the following –
– small businesses
– small agricultural cooperatives
– small aquaculture businesses
– most private non-profit organizations
This includes:
– Businesses directly affected by the disaster
-Businesses that offer services directly related to the businesses in the declaration
– Other businesses indirectly related to the industries likely to be harmed by losses in their community (for example a manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product)

Criteria for loan approval includes:
– Credit history – applicant must have a credit history acceptable to SBA
– Repayment – SBA will determine whether the applicant business has the ability to repay the SBA loan
– Applicant business must be physically located in a declared county (Roanoke has been declared) and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons

Borrowing:
– Eligible applicants may qualify for loans up to $2 million
– Interest rates are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years
– Eligibility for these loans are based on the size (must be a small business) and type of business and its financial resources
– Loans my be used to pay fixed debts, payroll, accounts payable, and other obligations that could have been paid had the disaster not occurred – loans are not intended to replace lost sales/profits or for expansion
– Collateral is required for loans over $25,000 – SBA accepts real estate as collateral; they do not decline a loan for lack of collateral, but require borrowers to pledge what is available

TO LEARN MORE, ACCESS THE FOLLOWING LINK
https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources