The US Small Business Administration (SBA) is one of the few constants in the volatile world of entrepreneurship. Tasked with providing resources and financing to our nation’s small business owners, the agency really shines when calamity strikes. Whether it’s wildfires, floods, earthquakes, pandemics, or something else entirely, the SBA’s disaster loans can be lifesavers for those affected.
To address the challenges many small businesses are facing due to the coronavirus outbreak, President Trump approved a bill that will open the SBA’s taps to provide tens of billions of dollars via disaster loans.
“The president took bold, decisive action to make our 30 million small businesses more resilient to coronavirus-related economic disruptions,” announced SBA Administrator Jovita Carranza in a statement. “Small businesses are vital economic engines in every community and state, and they have helped make our economy the strongest in the world. Our agency will work directly with state governors to provide targeted, low-interest disaster recovery loans to small businesses that have been severely impacted by the situation.”
These SBA disaster loans are intended for small business owners who can’t get funding from other sources. Basically, if you’ve had doors slammed in your face, the new bill is intended to enhance your opportunity to qualify for a number of loans and grants.
Here’s a look at some of the best emergency financing options available:
- SBA Economic Injury Disaster Loans: Small businesses can connect with as much as $2,000,000 through these excellent loans. You can use the money to cover expenses created or exacerbated by the disaster. This list includes unpaid bills, employee payroll, fixed debts, or accounts payable. If your business qualifies for one of these loans, the interest rate will be extremely borrower-friendly at 3.75%. For nonprofits, the interest rate is reduced to 2.75%.
- SBA Business Physical Disaster Loans: If your business has sustained damage from a disaster, you could qualify for up to $2,000,000 from these loans. They can help you pay for a variety of expenses related to the recovery.
- SBA Express Bridge Loan (EBL) Pilot Program: There are times when you might have other financing on the way but are struggling to make ends meet in the interim. The SBA’s EBL program provides small loan amounts, topping out at $25,000, but delivers the money in a hurry so you can meet your immediate needs.
- State-Sponsored Loans, Grants, and Other Assistance: As small businesses nationwide struggle to navigate the current crisis, many states are launching initiatives to provide relief. Examples include these programs in New York, Washington, and California.
Despite the inevitable challenges that lie ahead for America’s small businesses, the good news is that help is on the way. In the case of SBA loans and other programs, it’s already here. Take the time to research the options available for your business. Your success today and in the future could depend on it.