OKLAHOMA CITY (KFOR) – While many businesses are suffering due to the COVID-19 pandemic, officials say the social distancing restrictions have had a detrimental impact on small businesses.
Now, the U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to Oklahoma small businesses suffering substantial economic injury as a result of COVID-19.
SBA acted under its own authority to declare a disaster following a request by Gov. Kevin Stitt on March 17.
The disaster declaration makes SBA assistance available in the entire state of Oklahoma.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist Oklahoma 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 (COVID-19),” said Administrator Jovita Carranza.
Officials say representatives will be able to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process.
“Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the Coronavirus (COVID-19) 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.
Eligibility for the loans is based on the financial impact of the novel coronavirus on the business.
The interest rate is 3.75% for small businesses and 2.75% for private non-profit organizations. The loans are offered with long-term repayments, up to 30 years, to keep the payments affordable.
“These 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,” Carranza added.
Applicants may apply online or call the customer service center at (800) 659-2955
The deadline to apply for an Economic Injury Disaster Loan is Dec. 21, 2020.
For more information about Coronavirus, please visit: Coronavirus.gov.
For more information about available SBA resources and services, please visit: SBA.gov/coronavirus.
