Disaster Relief Credit Program for US small businesses

H. Roske & Associates LLP, December 29th, 2020.
If the current and for the time being probably continuing restrictions due to the coronavirus put your U.S. company in an unstable situation, the following information could be a relief. The Small Business Administration (SBA) has set up an aid credit program, which promises to quickly and easily grant favourable loans.

The prerequisite is that the company is located in a state recognized as particularly hard hit and has to cope with substantial economic losses due to the current corona situation. The following states are currently included: Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Illinois, Indiana, Louisiana, Maine, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Washington, and West Virginia.

The loans can be up to $2 million and have specified uses, including servicing continuing obligations, salaries, suppliers and other invoices. The interest rate is 3.75% for those companies that do not receive loans elsewhere. The term can be up to 30 years, with individual terms renegotiated from contract to contract, depending on the financial strength of the borrower.

For further information, especially regarding the availability of the loan at your location, please contact the SBA Disaster Assistance Customer Service Center or our team.