The Virginia Department of Small Business and Supplier Diversity (SBSD) and the Virginia Small Business Financing Authority (VSBFA) are pleased to report that Governor Ralph Northam announced today that the U.S. Small Business Administration (SBA) has approved an SBA disaster declaration for the Commonwealth of Virginia. The disaster declaration will allow SBA to provide assistance to Virginia businesses and nonprofits negatively impacted by COVID-19.
Virginia businesses and nonprofits impacted by COVID-19 are now eligible to make online applications to the SBA for the Economic Injury Disaster Loan program (EIDL) at disasterloan.sba.gov. For additional information or support, please contact Alan Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW., Suite 6050, Washington, DC 20416, (202 205-6734).
SBA's EIDL program offers direct loans up to $2 million to businesses and nonprofits without access to available credit elsewhere. The interest rate on EIDL loans to businesses is 3.75%. The interest rate for nonprofits is 2.75%.
SBA's Economic Injury Disaster Loans can provide vital economic support to small businesses by helping to overcome the temporary loss of revenue they are experiencing due to COVID-19. The loans may be used to pay fixed debts, payroll, accounts payable and other business expenses. SBA offers loans with loan terms of up to 30 years in order to keep payments affordable. Loan terms are determined on a case-by-case basis, based upon each borrower's ability to repay.
We want to thank all of the businesses and partners that responded and distributed our impact survey earlier this week. Your response allowed us to collect the data necessary for Virginia to apply and secure the disaster declaration creating access for small businesses to apply for federal disaster loans from the SBA.
For a comprehensive list of actions, Governor Northam has announced to combat COVID-19 in Virginia, visit virginia.gov/coronavirus.
The Virginia Department of Small Business and Supplier Diversity (SBSD)