The US Small Business Administration (SBA) is offering low-interest federal disaster loans to provide working capital to small businesses suffering substantial economic injury as a result of the Coronavirus. While marijuana businesses are not eligible for federal loans because marijuana remains a controlled substance, ancillary businesses and hemp businesses are not subject to this restriction.
The maximum amount available per borrower is $2 million.
- Funds 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 without credit available elsewhere; businesses with credit available elsewhere are not eligible.
- Collateral is required for all loans over $25,000.
Applications for these loans can take time to process, and the administration is likely to be extremely busy, so if you think your business may need a loan, don’t wait until the last minute to apply.
For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail email@example.com. More information here: https://www.sba.gov/disaster-assistance/coronavirus-covid-19. Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/ela/s/