The U.S. Small Business Administration is now offering low-interest federal disaster loans for working capital to North Carolina small businesses suffering substantial economic injury as a result of the coronavirus.
SBA’s Economic Injury Disaster Loans (or working capital loans) are available to small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations
- Businesses directly affected by the disaster
- Businesses that offer services directly related to the businesses in the declaration
- Other businesses indirectly related to the industry that are likely to be harmed by losses in their community (Example: Manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product.)
The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.
HOW MUCH CAN PEOPLE BORROW?
- Eligible entities may qualify for loans up to $2 million.
- The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years.
- Eligibility for these working capital loans are based on the size (must be a small business) and type of business and its financial resources.
HOW CAN THEY USE THE FUNDS?
These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion.
HOW CAN PEOPLE APPLY?
- Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website.
- Paper loan applications can be downloaded from www.sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
- Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955, (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to email@example.com.
FOR HELP FILLING OUT THE SBA DISASTER LOAN APPLICATION
The following SBA-backed organizations provide assistance to small businesses in the state of North Carolina; email and phone counseling are available.
- Small Business and Technology and Development Center (SBTDC)
- Veterans Business Outreach Center
Women’s Business Centers: