What Coronavirus Disaster Loans are available from the SBA?
The U.S. Small Business Administration (SBA) provides low-interest disaster loans to businesses, private non-profits, homeowners, and renters. SBA disaster loans are the primary source of federal long-term disaster recovery funds for disaster damage not fully covered by insurance or other compensation. This applies for the Coronavirus pandemic, which is now a U.S. National Emergency.
Who is eligible for SBA low-interest loans due to the Coronavirus pandemic?
When a federal disaster is declared, the SBA is authorized to offer low interest disaster loans to businesses of all sizes (including landlords), private non-profit organizations, and to individual homeowners and renters. Currently, this applies to everyone in the United States, since everyone is affect by the Coronavirus pandemic national emergency.
What are the typical Coronavirus disaster loan amounts from the SBA?
The exact amounts are still be worked out and as of writing, are unclear. We have comparable examples to past disasters to use as a benchmark. During the California wildfires disaster emergency in 2015:
- Businesses of all sizes could qualify fo up to $2 million in low-interest loans
- Eligible homeowners and renters could borrow up to $40,000 for personal property damage
- Eligible homeowners could borrow up to $200,000 for replacement of primary residence
For Coronavirus disaster loans, the business loan amount remains the same $2 million.
The individual homeowner and renter amounts may be different. As soon as we have more details from the SBA, we will update the information here.
What is the interest on disaster loans from the SBA?
Interest rates from the SBA can be as low as 1.8% and up to 4%. Loans have to be approved by the SBA. According to the SBA: “The SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred.”
To apply you can go to disasterloan.sba.gov to go through the application process. These loans are called "Economic Injury Disaster Loans".
If you want help applying, we can help. Email us at firstname.lastname@example.org