The United States Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to Illinois small businesses suffering substantial economic injury due to the coronavirus pandemic.
A federal act for the program was recently signed into law. The disaster declaration makes SBA assistance available in the entire State of Illinois.
Small businesses, private non-profit organizations, and small agriculture cooperatives, that have been financially impacted as a direct result of COVID-19 since January 31, may qualify for the Economic Injury Disaster Loans, which can help meet financial obligations and operating expenses which could have been met if the disaster had not occurred.
The loans can be used to pay fixed debts, payroll, accounts payable and other bills. Eligibility is based on financial impact. The loans, which could be for as long as 30 years, have an interest rate of 3.75 percent for small businesses and 2.75 percent for non-profits.
Applications and more information are available online at DisasterLoan.sba.gov/ela.
The deadline to apply for the disaster loan is December 21.