U.S. Small Business Administration (SBA) Loans related to Coronavirus (COVID-19)
Wisconsin officially requested federal disaster loans from the SBA and we expect that application will be approved quickly. Once approved, this means the SBA will offer low-interest loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
These loans are referred to as Economic Injury Disaster Loans (EIDL) and will be available for Wisconsin small businesses, agricultural cooperatives and nonprofit organizations. The key facts to know are the following:
- Loans are available for “substantial economic injury”, which means your business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster.
- Loans are available up to $2 million, with the exact amount based on your actual economic injury and your company’s financial needs.
- Loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the impact of Covid-19.
- The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.
- The term of the loan can be up to 30 years, but the exact repayment schedule will be determined on a case-by-case basis.
Please feel free to contact our experienced legal team with questions or if you need assistance applying for these loans. Applications can typically be completed online at the following address (https://disasterloan.sba.gov/ela/) and paper applications are also available. More specific application instructions will become available after Wisconsin receives official approval for these SBA loans.