• COVID-19: Government Eases Disaster Assistance Loans for Small Businesses

  • COVID-19: Government Eases Disaster Assistance Loans for Small Businesses

    The federal government has relaxed criteria for states and territories to
    obtain disaster assistance loans for small businesses as part of an initiative
    to combat coronavirus disease 2019 (COVID-19), according to an announcement.

    The U.S. Small Business Administration revised the criteria to make
    qualification for assistance faster and easier for states and territories and
    to provide statewide access to disaster assistance funding.

    Here's how SBA says the criteria has changed:

    --States or territories only need to certify that at least five small
    businesses within their borders have suffered "substantial" economic injury.
    Before, they would have to document that at least five small businesses were
    significantly harmed in each county or parish declared a disaster.

    --Disaster assistance loans will be available statewide after an economic
    injury declaration. This will apply to current and future disaster declarations
    related to COVID-19. Before, SBA disaster assistance loans were typically only
    available to small enterprises within counties identified as disaster areas by
    a governor.

    SBA Administrator Jovita Carranza said banks and financial institutions are
    responding to President Donald Trump's initiatives to combat the coronavirus
    outbreak.

    "Most small businesses that need credit during these uncertain times will be
    able to obtain it. However, our goal is to ensure that credit is available to
    any and all small businesses that need credit but are unable to access it on
    reasonable terms through traditional lending channels," Carranza said.

    --Reporting by Donna Harris, dharris@opisnet.com; editing by Barbara Chuck,
    bchuck@opisnet.com


    Copyright, Oil Price Information Service

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