SBA Covid-19 Disaster Loans for Small Businesses

March 18, 2020

The U.S. Small Business Administration is making low-interest federal disaster loans available to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). This relief loan assistiance is provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act signed by the President.

The U.S. Small Business Administration (SBA) has designated COVID-19 as a qualifying event for the provision of Economic Injury Disaster Loans (EIDL) for businesses and private non-profits in declared zones. 

Michigan's governer has  formally requested the U.S. Small Business Administration to issue an Economic Injury Disaster declaration for the state and approval is expected within the next 24 hours.

Once approved by the SBA, $1 billion in low-interest loans will become available to small businesses, small agricultural cooperatives, and nonprofits that have suffered substantial economic losses as a result of the COVID-19 pandemic.

• 3.75% interest for small businesses without credit available elsewhere
• 2.75% for non-profits 
• Long term, low/affordable repayment options (max 30 years / terms made on a case-by-case basis)

Covid-19 related disaster assitance loans for small businesses may be used for:

• Fixed debts
• Payroll
• Accounts Payable

For additional information or to obtain help preparing the loan application, please contact the Michigan SBA offices in Detroit or Grand Rapids. The official application for the Economic Injury Disaster Loan can be found here https://disasterloan.sba.gov/ela/