Federal loans available for small businesses economically impacted by coronavirusBy STAFF REPORTS,
The Small Business Administration is offering low-interest federal disaster loans for working capital to Mississippi small businesses suffering substantial economic injury as a result of the COVID-19 pandemic.
The federal cash was made available following a disaster declaration by Mississippi Gov. Tate Reeves and the signing of the Coronavirus Preparedness and Response Supplemental Appropriations Act by President Donald J. Trump.
The disaster declaration makes federal assistance available to the entire state of Mississippi.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist Mississippi 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,” said Jovita Carranza, SBA administrator.
Carranza added that small businesses, private nonprofits of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the pandemic since January 31 may qualify for a loan of up to $2 million to “help meet financial obligations and operating expenses.”
The loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster. Eligibility is based on the financial impact of the coronavirus pandemic, and the interest rate is 3.75 percent for small businesses and 2.75 percent for private nonprofits.
Loans with long-term repayments – up to a maximum of 30 years – are available.
The deadline to apply is Dec. 21.