Is coronavirus hurting your Kentucky small business? Here’s how to apply for help.
The U.S. Small Business Administration will offer disaster loans for working capital to Kentucky businesses hurt by the novel coronavirus pandemic, according to a news release from U.S. Rep. John Yarmuth.
The disaster declaration makes SBA help available throughout the state, said Yarmuth, a Democrat from Louisville.
The economic injury disaster loans are for up to $2 million per small business, according to Yarmuth’s release.
A fact sheet with the declaration indicates the $2 million limit can be waived if the business is considered a major source of employment.
The loans can be used for a variety of needs at businesses where cash flow has dried up during the coronavirus crisis, including fixed debts, payroll, accounts payable and other bills, according to the release. It can’t be used to refinance long-term debt.
The interest rate is 3.75 percent for businesses that don’t have access to other credit. Businesses with credit available elsewhere are not eligible.
The interest rate for non-profits is 2.75 percent.
The fact sheet indicates small agricultural cooperatives also are eligible.
The maximum loan term is 30 years. The terms are determined on a case-by-case basis depending on each borrower’s ability to repay, according to Yarmuth’s office.
Businesses can get information, apply online or download applications at https://disasterloan.sba.gov/ela.
Applicants can also call (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. The number for people who are hearing impaired is (800) 877-8339.
The deadline to apply for an economic injury disaster loan is Dec. 21, 2020.
“With great uncertainty before us as we combat this global pandemic, it’s absolutely vital that our local small businesses have the resources they need to take care of their workers and survive this crisis,” Yarmuth said.
Efforts to limit the spread of the coronavirus, which causes the respiratory illness known as COVID-19, have hurt businesses in Kentucky in recent weeks.
Many have had to close or curtail operations under orders from Gov. Andy Beshear aimed at keeping down crowds.
Experts have warned that if efforts to slow the progression of cases don’t work, the state’s health system could be overwhelmed.
