In light of the hardships being experienced by business owners around the state due to the novel coronavirus 2019 pandemic, the U.S. Small Business Administration (SBA) is now offering assistance through their Disaster Loan program.
Governor Kim Reynolds announced Saturday that a disaster declaration had been approved for the State of Iowa effective January 31st, and it allows small businesses impacted by COVID-19 to apply for low-interest support loans. Reynolds said in a statement, “The SBA Disaster Loan program is vital in assisting our small businesses that have been so heavily impacted by these unprecedented times. I will continue to work with President Trump and his administration to provide relief to Iowa small businesses as we combat the spread of COVID-19 in Iowa.”
Reynolds has stopped short of issuing a stay at home declaration for Iowans and says she doesn’t anticipate doing so, but has restricted what services businesses are able to offer while the coronavirus threat is active. She’s confident the SBA loans will give small business owners the boost they need to maintain operations during the pandemic. The loans can be up to $2 million and used to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses, and 2.75% for nonprofit organizations. For more information or to access the online loan application, click the link below.