AURORA | The U.S. Small Business Administration on Thursday announced it will offer low-interest loans to business owners affected by the COVID-19 outbreak.
Small business owners and private non-profit organizations that have suffered direct losses as a result of the virus since Jan. 31 will be able to apply for “economic injury disaster loans” of up to $2 million, according to Chris Chavez, spokesman for the SBA.
“These 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,” Chavez wrote.
Small business owners will face interest rates of 3.75 percent, and private non-profit groups will pay a point less. The loans can be repaid over the course of 30 years, according to information provided by the SBA.
“We are all concerned about the pressures our small businesses are facing in light of the Coronavirus outbreak,” SBA Colorado District Director Frances Padilla said in a statement. “The SBA Colorado District Office stands ready to assist our small business owners by providing the assistance needed to confront this challenge.”
The federal Labor Department on Thursday reported that applications for benefits rose by 70,000 last week, bringing the total to its highest mark since Hurricane Harvey in September 2017, The Associated Press reported. Officials said benefit applications could soon surpass 1 million, which would eclipse the previous weekly high of 665,000 circa 2008.
Gov. Jared Polis asked the SBA to declare a disaster and trigger the loan program on Tuesday.
The SBA was able to make the declaration after President Donald Trump signed the federal Coronavirus Preparedness and Response Supplemental Appropriations Act Wednesday.
Business owners interested in applying for the loan program are instructed to complete an application at disasterloan.sba.gov/ela. Questions may be answered by calling 800-659-2955.
The application process will be open until Dec. 17.