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Charleston News


March 17, 2020

Assistance for Businesses Impacted by COVID-19

Posted by: admin

The Small Business Administration (SBA) Economic Injury Disaster Loan program has been made available to eligible businesses and private non-profits that were impacted by the Coronavirus (COVID-19). Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small businesses and private non-profit organizations in designated counties of the state (county by county). SBA’s Office of Disaster Assistance will coordinate with the State to submit the request for Economic Injury Disaster Loan Assistance.

 

These working capital loans of up to $2 million can be used to pay fixed debts, payroll, and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

 

In order to receive an economic injury declaration, Arkansas must show that small businesses within individual counties have suffered substantial economic injury as a result of the disaster, and are in need of financial assistance not otherwise available on reasonable terms. The method to determine impacts of the disaster is through the collection of Economic Injury Disaster Loan worksheets. These worksheets provide an estimated economic impact of each business affected.

 

If your business has been affected by COVID-19, please complete this worksheet and return to Arkansas Division of Emergency Management at: businesscovid19@adem.arkansas.gov