Gov. Holcomb Announces Small Business Assistance in Response to COVID-19

STATE WIDE--If you have a business that has been affected by the coronavirus or the attempt to stop the spread of the pandemic, you should be aware that loans are available from the Small Business Administration. Indiana was the first state in the Great Lakes area to be approved for the loans.

"It's any business that's affected by what's happening," said Rob Scott, who represents the SBA in Indiana. "So, it could have no direct correlation. It could be a supply chain issue or it could be the fact that the business had to be closed."

The loans are for up to $2 million, and must be repaid over a 30-year period.

Scott stressed that the money is a loan, not a grant.

“SBA is strongly committed to providing the most effective and customer-focused response possible to assist Indiana small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of the Coronavirus (COVID-19),” said Administrator Jovita Carranza.

SBA customer service representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process.

“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 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.

Eligibility for Economic Injury Disaster Loans is based on the financial impact of the Coronavirus (COVID-19). The interest rate is 3.75 percent for small businesses. The interest rate for private non-profit organizations is 2.75 percent. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.