FAIRWAY, KS (KCTV) -- The U.S. Small Business Administration is now offering disaster assistance to small businesses in both Kansas and Missouri.
The SBA is offering "low-interest federal disaster loans for working capital" for small businesses in both states that are enduring "substantial economic injury" due to the COVID-19 pandemic.
The SBA acted under their own authority to make a disaster declaration after receiving requests from Kansas Governor Laura Kelly and Missouri Governor Mike Parson on March 17.
The declaration applies across all of Kansas and Missouri.
“Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the Coronavirus (COVID-19) since Jan. 31, 2020, may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” said SBA Administrator Jovita Carranza.
“These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing,” Carranza added.
The deadline to apply for an Economic Injury Disaster Loan is Dec. 21, 2020.
Eligibility is based on the financial impact of COVID-19.
The interest rate is 3.75 percent for small businesses and 2.75 percent for private nonprofit organizations. The SBA offers loans with long-term repayments up to a maximum of 30 years and are “available to entities without the financial ability to offset the adverse impact without hardship.”
Applicants can apply online and download applications at https://disasterloan.sba.gov/ela. Applicants can also call SBA’s Customer Service Center at 800-659-2955 or email email@example.com for more information.