Loans for Arizona’s small businesses impacted by COVID-19 approved by U.S. SBA

The U.S. Small Business Administration (SBA) on Thursday, March 19, approved an Economic Injury Disaster Loan declaration for Arizona that will help small businesses impacted by COVID-19.

Individual businesses are eligible for up to $2 million through the program.

On March 16, Gov. Doug Ducey submitted a request to the federal government for the economic assistance, which is made available through the Coronavirus Preparedness and Response Supplemental Appropriations Act signed by President Trump on March 6.

“As we continue to address COVID-19 and prioritize public health, we are working with our federal partners to mitigate the economic impact on Arizona’s small businesses and employees,” Ducey stated in a March 16 news release. “Businesses suffering substantial economic injury because of COVID-19 can apply for this loan through the Small Business Administration’s website by going to SBA.gov/disaster. Our administration stands ready to help.”

The loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of COVID-19’s impact. The interest rate is 3.75% for small businesses without credit available elsewhere.

The interest rate for nonprofits is 2.75%. SBA offers loans with long-term repayments to keep payments affordable for a maximum of 30 years. Terms are determined on a case-by-case basis, based on a borrower’s ability to repay. Small businesses throughout the state that fit this criteria are eligible.

The Federal Small Business Administration has authorized low interest loans for small businesses severely impacted by the Coronavirus (COVID-19). They are working through the Arizona Governor’s office to identify those businesses which need this assistance.

If you own a business in the Quad Cities and you want to apply for a loan, you can send your paperwork via email to jeri.denniston@yc.edu for forwarding to the governor’s office.