Nevada businesses eligible for $2 million low-interest SBA loans
UPDATE: On March 27, after this story published, President Trump signed into law the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act — or the CARES Act.
The law, among other things, waives the “credit-elsewhere test” for businesses looking to apply for an Economic Injury Disaster Loan, meaning that small businesses that have credit available elsewhere are now eligible.
Initially, when an economic emergency was announced March 17 and loans were made available, only small businesses without credit available elsewhere were eligible to apply.
The original story from March 23 is below.
RENO, Nev. — Last week, the Small Business Administration declared the entire state of Nevada an economic disaster zone, meaning businesses impacted by the COVID-19 crisis are eligible for low-interest SBA loans from the federal government.
SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance per each business that has “been financially impacted as a direct result of the Coronavirus (COVID-19) since Jan. 31, 2020,” according to SBA.
Loans may be used to pay fixed debts, payroll, accounts payable rents and/or other bills that can’t be paid because of the disaster’s impact.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist Nevada small businesses with federal disaster loans,” SBA Administrator Jovita Carranza said in a press release. “We will be swift in our efforts to help these small businesses recover from the financial impacts of the Coronavirus (COVID-19).
“Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing.”
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%.
“We did a lot of very, very difficult evaluation over a very, very short amount of time and just concluded that this was the right thing for the company at large.”