This week, Administrator Jovita Carranza of the federally-funded Small Business Association (SBA), issued an important statement addressing the significant financial resources and support that is dedicated to helping small businesses as we all work together to respond to the disruption from COVID-19.
Business owners and entrepreneurs can reach out to the New Jersey Small Business Development Centers (NJSBDC) network which provides to small business owners throughout the state under a Partnership Program with the SBA. IT is important to note that the NJSBDC network has 12 centers and more than 20 higher education affiliated offices and satellite locations throughout New Jersey.
SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible. Recognizing that small businesses are vital economic engines in every community and state, the SBA is planning on taking the following steps:
- Working directly with the New Jersey Governor’s office (as with all state governors) to provide targeted, low-interest disaster recovery loans to small businesses that have been severely impacted by the situation.
- Upon a request received from the Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration.
- SBA’s Office of Disaster Assistance will coordinate with the Governor to submit the request for Economic Injury Disaster Loan assistance. 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 areas in the state to help alleviate economic injury caused by the Coronavirus (COVID-19).
- SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
- 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. 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.
It is also important to remember that the SBA and the NJSBDCs, under the guidance of current State Director, Brenda Hopper, will continue to assist small businesses around the state with counseling and navigating their own preparedness plans.
For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 or e-mail disastercustomerservice@sba.gov
