Written by Pat Frew, CBC Executive Director
Kentucky, Ohio and Indiana are qualified for U.S. Small Business Administration Disaster Loan Assistance. With that certification now in place, small businesses, for-profit contractors and private non-profits anywhere in these states that have been harmed by the COVID-19 pandemic are eligible to apply for low-interest SBA Economic Injury Disaster Loans. SBA will determine if the company meets the requirement of a “small business”. If you think you are too big, you might be surprised on who qualifies!
SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
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. The interest rate is 3.75% for small businesses and the interest rate for non-profits is 2.75%.
SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay
No cost to apply
Up to $25,000 unsecured, approvals greater than $25,000 will require at a minimum a pledge of real estate. If there’s no real estate the SBA is a cash flow lender and the lack of collateral is no reason to deny a loan request.
Up to 11 months payment deferral; once they apply, they can discuss with their loan office at the SBA
If business owner has multiple entity each entity can apply
Processing times for approval are approximately 21 days, however SBA legal will then prepare the authorization and doc then send to client. Once returned from the client there’s approximately another 3-5 days for the initial disbursement.
Disaster Loan Document Checklist (all of these items are also available in Spanish)
o For principals, general partners or managing members, and affiliates
o Include all schedules
Visit www.sba.gov/disaster for additional information.
The Baker Hunt Arts & Cultural Center has been adapting to the forced changes to work remotely. The Center is hosting weekday online arts classes on Facebook for youngsters: https://www.facebook.com/BakerHuntArt/videos/899269740506941/
The Center is also looking at offering Yoga classes soon online.
“The CBC has provided me the opportunity to network with other local business leaders. Being new to the area this has become a valuable resource.”