Small business owners and nonprofit agencies may have been tossed a lifeline from the U.S. Small Business Administration, which just named New Jersey and several other states a declared disaster state in the wake of the Coronavirus pandemic.
This declaration will allow New Jersey small business owners and non-profit organizations impacted by COVID-19 to apply for SBA Economic Injury Disaster Loans (EIDLs) that provide financial assistance to help support their businesses.
EIDLs are secured loans up to $2,000,000 as determined by the SBA, with a maximum interest rate of 3.75% for small businesses — less if you are a non-profit organization. These working capital loans are designed to help small businesses and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations like payroll and vendor payments that cannot be met as a direct result of a disaster.
These loans are intended to assist through the disaster recovery period, so we encourage every small business and nonprofit that qualifies to register and apply ASAP whether or not you ultimately end up requiring assistance. Note that these loans cannot be used to refinance long-term debt of a business.
Questions? The Magone & Company team of business advisors is here to help. Contact us if we can be of assistance.