Businesses hurt by the coronavirus pandemic have another 12 months to apply for an Economic Injury Disaster Loan. The deadline for U.S. Small Business Administration loan applications was extended to Dec. 31 of this year by the COVID-19 relief bill approved by Congress in late December 2020.
About $197 billion in low-interest loans have been provided by the SBA so far to small businesses, agricultural businesses, and nonprofits to help overcome losses caused by the pandemic.
The Corpus Christi Regional Economic Development Corp. provides a link to the applications and more information on its website at ccredc.com.
“The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing,” reads an announcement on the EDC website. “The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue.”
Loan terms include an interest rate of 3.75 percent for small businesses and 2.75 percent for nonprofits. Loans have a 30-year maturity rate and an automatic, but voluntary, deferment of one year before monthly payments begin. However, interest will accrue.
Qualified entities must have 500 or fewer employees and have suffered substantial economic injury as a result of the pandemic. The loan money can be used for working capital and normal operating expenses.