Small Business Loans for Businesses Affected by Coronavirus

With much of the country unable to leave their home and government orders shuttering non-essential businesses, the small business community is feeling major financial pressure.

Many small businesses don’t have a large cash cushion if their revenue is restricted or cut. In these cases, business owners may need additional funding assistance to keep their doors open.

Below are some of the most viable solutions for business owners being affected by the coronavirus.


SBA Disaster Assistance Loans

The U.S. Small Business Administration (SBA) is a federal government agency dedicated to the growth and stability of small businesses and entrepreneurs in the United States.

During certain emergencies like hurricanes, major floods, and other natural catastrophes, the SBA steps in with financial assistance to affected businesses and nonprofits.

In a press release on March 12th, 2020, the SBA announced that it would be providing Disaster Assistance loans to businesses impacted by the coronavirus (COVID-19) pandemic. These loans are now extended to all US states and territories.

What Can the SBA Disaster Assistance Loan Be Used For?

SBA disaster loans are an emergency stand-in for any lost revenue that your business is experiencing from the coronavirus outbreak.

The main, stated uses for the loan are:

  • Payroll
  • Paying fixed debts
  • Accounts payable
  • Utilities
  • Assorted bills

While this money is available to you to spend how you best see fit, you should consider cutting any unnecessary expenses from your budget temporarily.

For example, things like fresh flowers for the office and catered lunches may be nice to have under normal circumstances. However, payroll and essential business operations are much more important at this time to ensure that your business can survive through this adversity.

What are the Terms of the SBA Disaster Assistance Loan?

  • Funds available up to 2 million dollars
  • Long repayment terms are available, with amortization schedules up to 30 years (Terms are determined on a case-by-case basis, according to the SBA)
  • Interest rates are to be set at 3.75% for small businesses and 2.75% for private nonprofits
  • Loans exceeding $25,000 must be secured by collateral to the extent possible

Does My Business Qualify For an SBA Disaster Assistance Loan?

Small businesses and private nonprofits in all US states and territories are eligible to apply for the loan.

Your business must be negatively impacted by the coronavirus (COVID-19) pandemic to be considered.

If you think your business is too large to be considered a “small business,” you can check out the SBA’s Table of Size Standards.

How Do I Apply for an SBA Disaster Assistance Loan?

You can apply for an SBA Disaster Assistance loan through the SBA Disaster Loan Portal.

If you wish to apply by phone, you can dial 1‐800‐659‐2955.

The current application filing deadline is December 21st, 2020.

If you have questions regarding eligibility, terms, or anything else, you can call the SBA at 1-800-659-2955 or email them at disastercustomerservice@sba.gov.

NOTE: Given the massive number of people using the SBA’s online and phone systems, you should expect delays and website lag.

Other Coronavirus Small Business Loans

Besides the SBA loan, there may be other programs available to your business to get you the funding or assistance that you need.

State Loans

Some states like are providing loans and grants over and above what the Federal Government is offering.

Use the drop-down below to find your state’s resources.

Private Loans for Coronavirus

Many large businesses and foundations are putting together relief loan packages for specific businesses or situations. Not all of these options may be available to your business, so be sure to read further into each of them.

For a list of private grants, visit our guide to private coronavirus relief grants.

JPMorgan Chase

JPMorgan is providing $8 million in funds to Community Development Financial Institutions (CDFIs) so they can offer low or zero-interest loans to local small businesses. $5 million will go toward US small businesses and $3 million will go toward international businesses.

Learn more on the JP Morgan Chase website.

Google

As part of its $800 million coronavirus relief program, Google has created a $200 million investment fund for non-governmental organizations (NGOs) and global financial institutions so they can offer capital to small businesses. An additional $15 million will go to nonprofits so that they can further assist struggling small businesses.

Learn more on Google’s company announcement page.

Wefunder

Crowdfunding service Wefunder has established a Coronavirus Crisis Loans Program. Small businesses can crowdfund loans from their customer base and investors in amounts of $20,000 to $1 million.

Learn more on Wefunder’s loan program webpage.

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