President Donald Trump announced Wednesday that the U.S. Small Business Administration will offer low-interest loans to mitigate the financial impact of COVID-19, the new coronavirus, on small businesses.
At a state governor’s request, the Small Business Administration will issue an Economic Injury Disaster Loan declaration to provide capital to small businesses and private nonprofits “suffering substantial economic injury” due to COVID-19, according to a news release.
Long-term repayment loans up to $2 million can be used toward paying fixed debts, payroll, accounts payable and other bills, according to the release.
Small businesses unable to receive credit elsewhere will acquire loans at a 3.75% interest rate, while businesses with external credit sources will not be eligible for the loan, the release said. Nonprofits will be granted loans with a 2.75% interest rate.