Small business loans available to help with economic impact of Coronavirus Pandemic
HONOLULU – The federal government has announced that starting on April 3, 2020, small businesses can begin to apply for and receive loans to cover payroll and other operating expenses through Small Business Adminstration (SBA) lenders. Independendent contractors and those self-employed can begin applying on April 10, 2020.
“It is important that applications are submitted as soon as possible. We need to make sure our small businesses can receive the help they need to get through these difficult times,” said Tenth District Rep. Angus McKelvey of Lahaina.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act set aside $350 billion for small business loans. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans which can provide vital economic support to small businesses to help deal with the temporary loss of revenue they are experiencing.
The new SBA Paycheck Protection Program (PPP) provides small businesses with zero-fee loans to cover operating expenses including up to eight weeks of payroll, mortgage interest, rent, and utility costs. These expenses can be forgiven and the interest rate on any part of the loan not forgiven has been set at 0.5 percent. Payments on principal and interest will be deferred for a minimum of six months and up to one year. Early submission of applications is encouraged as the demand for these loans is expected to be exponentially high.
Apply for SBA loan applications at www.sba.gov/page/disaster-loan-applications.
Contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800- 877-8339) or by e-mail at firstname.lastname@example.org.