Gov. Tom Wolf asked the U.S. Small Business Administration (SBA) on Wednesday to implement a disaster declaration, which would allow eligible nonprofit organizations and businesses statewide to apply for SBA Economic Injury Disaster Loans.
SBA Economic Injury Disaster Loans provide up to $2 million in assistance for payroll, fixed debts, accounts payable, and other bills that otherwise wouldn’t be paid because of a disaster’s impact. The loans help small businesses overcome a temporary loss of revenue.
The loan’s interest rate for nonprofits is 2.75 percent and for small businesses without credit available elsewhere is 3.75 percent. Businesses with credit available elsewhere are not eligible.
Loan terms are determined on a case-by-case basis and can have repayment periods up to 30 years.
“The impact of financial losses related to COVID-19 will be felt for years to come,” Wolf said. “But these low-interest loans can help bridge the gap between economic losses now and economic recovery in the future.”
If Wolf’s request is granted, details on how to apply and deadlines will be made available online.
Pennsylvania small businesses can also apply to the Small Business First Fund for assistance. The Pennsylvania Industrial Development Authority administers the fund.