BOISE, Idaho (KIFI/KIDK)-The U.S. Small Business Administration is now offering low interest federal disaster loans for working capital to Idaho small businesses. The loans are intended to help business suffering economic injury as a result of COVID-19.
Governor Brad Little's office said the 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.
"Small business is the backbone of our economy, and that's why I requested additional resources for Idaho's small businesses during this time of hardship and uncertainty," Little said.
Eligible businesses, nonprofits, and small agricultural cooperatives may qualify for Economic Injury Disaster loans of up to $2 million.
The interest rate is 3.75% for small businesses. The interest rate for private nonprofit organizations is 2.75% with long-term repayments of up to a maximum of 30 years.
You can find more information on the program here.
There is also help available for borrowers still paying back SBA loans from previous disasters. Now, deferments through December 31,2020 will be automatic. Borrowers do not have to contact SBA to request deferment.
"The SBA is looking at every option and taking every action to cut red tape to make it easier for small businesses to stay in business. Automatically deferring existing SBA disaster loans through the end of the year will help borrowers during this unprecedented time," said Administrator Carranza. "Today's announcement adds a list of growing actions the SBA is taking to support small businesses. These actions include making it easier for states and territories to request a declaration so small businesses statewide can now apply for economic injury disaster loans, and changing the terms of new economic injury loans to allow for one-year deferments. We are working around the clock to find ways to assist small businesses and today's action is one step in this process."