The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to Connecticut small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19), SBA Administrator Jovita Carranza announced today. SBA acted under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, to declare a disaster following a request received from Gov. Ned Lamont on March 15, 2020.
The disaster declaration makes SBA assistance available in the entire state of Connecticut; and the contiguous counties of Berkshire, Hampden, and Worcester in Massachusetts; and Dutchess, Putnam and Westchester in New York; and Kent, Providence and Washington in Rhode Island.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist Connecticut small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of the Coronavirus (COVID-19),” said Administrator Carranza. SBA Customer Service Representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process. “Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the Coronavirus (COVID-19) since Jan. 31, 2020, may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” said Carranza.
Loans of up to $2 Million
1) All CT Businesses are Eligible if you have a physical presence in the state
2) You should fill out the on-line form, link below. THERE WILL BE NO IN PERSON APPLICATIONS (for obvious reasons)
3) You need to show a credit history and ability to pay back the loan
4) Loans are 3.25% of profit and 2.75% for non profit businesses
5) Loans can be used for most expenses; Payroll, Accounts Payable and fixed costs, but it does not cover business losses
6) Money will come directly from the US Treasury, not a loan through a bank
7) CT Small Business Development Center is available to assist in filling out and filing of the application. See link below