The U.S. Small Business Administration on Wednesday announced that it was offering low-interest federal disaster loans in Indiana to provide working capital for businesses struggling during the coronavirus outbreak.
The loans will be available statewide and in numerous border counties in surrounding states. The Coronavirus Preparedness and Response Supplemental Appropriations Act signed by President Trump authorized the SBA to offer an additional $50 billion in loans nationally to help small businesses during the pandemic.
Indiana became eligible for the SBA assistance after Gov. Eric Holcomb requested a disaster declaration for the state on Tuesday.
The loans are available to small businesses, private not-for-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,” the SBA said.
The Economic Injury Disaster Loans of up to $2 million are to be used “to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” SBA Administrator Jovita Carranza said in a written statement.
“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,” he said. “Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing.”
The interest rate for the loans is 3.75% for small businesses and 2.75% for private not-for-profit organizations, with terms up to 30 years.
Applicants may apply or learn more online.
In anticipation of the loans being offered, the Indy Chamber launched a Rapid Response Hub on Monday to direct small business owners to various resources.