FRAMINGHAM — The Baker-Polito administration announced that the U.S. Small Business Administration (SBA) will offer low-interest federal disaster loans for working capital to Massachusetts small businesses suffering substantial economic injury as a result of coronavirus (COVID-19). The disaster declaration makes SBA assistance available following a request received from Gov. Charlie Baker on March 17.
The disaster declaration makes SBA assistance available in the entire state of Massachusetts and the contiguous counties in neighboring states.
Small businesses, private nonprofit organizations of any size, small agricultural cooperatives, and small aquaculture enterprises that have been financially impacted as a direct result of COVID-19 since Jan. 31 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.
Eligibility for Economic Injury Disaster Loans is based on the financial impact of the coronavirus. The interest rate is 3.75% for small businesses and 2.75% for private nonprofit organizations. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years, and are available to entities without the financial ability to offset the adverse impact without hardship.
Applicants may apply online, receive additional disaster-assistance information, and download applications at disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or e-mail [email protected] for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The deadline to apply for an Economic Injury Disaster Loan is Dec. 18.
In addition, on March 16, the Baker-Polito administration announced a $10 million Small Business Recovery Loan Fund, and the administration remains in ongoing discussions across state government and with federal partners to determine what resources can be made available to small businesses and nonprofits as they contend with the negative effects of this public-health emergency.