CUMBERLAND — The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to Maryland small businesses suffering substantial economic injury as a result of the coronavirus.
The disaster declaration signed by the president makes SBA assistance available in the entire state of Maryland; Adams, Bedford, Chester, Fayette, Franklin, Fulton, Lancaster, Somerset and York counties in Pennsylvania; and Berkeley, Grant, Hampshire, Jefferson, Mineral, Morgan and Preston counties in West Virginia.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist Maryland small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of the coronavirus,” said Administrator Jovita Carranza.
“Small businesses, private nonprofit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the coronavirus since Jan. 31, 2020, may qualify for economic injury disaster loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” said Carranza.
“Loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing.”
Eligibility is based on the financial impact of the coronavirus. The interest rate is 3.75% for small businesses. The interest rate for private nonprofit organizations is 2.75%. SBA offers loans with repayments up to 30 years that are available to entities without the financial ability to offset the adverse impact without hardship.