Iowa (KWQC) - Governor Reynolds announced Saturday that the U.S. Small Business Administration (SBA) has issued an Economic Injury Disaster Loan declaration for the state of Iowa beginning January 31, 2020 and continuing.
Officials say this declaration will allow pandemic-impacted small businesses to apply for low-interest support loans.
Reynolds submitted a federal funding request through the SBA's Economic Injury Disaster Loan program, according to a press release.
"This SBA Disaster Loan program is vital in assisting our small businesses that have been so heavily impacted by these unprecedented times,” said Reynolds, “I will continue to work with President Trump and his administration to provide relief to Iowa small businesses as we combat the spread of COVID-19 in Iowa.”
The SBA says loans are now being made available statewide to small businesses and private, non-profit organizations in an attempt to help alleviate economic injury as a result of COVID-19.
SBA's Economic Injury Disaster Loans offer up to $2 million in assistance and Reynolds' office said, "can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing."
Officials say the loans may be used to pay fixed debts, payroll, accounts payable, and other bills that businesses cannot pay because of the impact of the disaster.
The interest rate is 3.75 percent for small businesses and 2.75 percent for non-profits. The SBA offers loans with long-term requirements in order to keep payments affordable. The loans can be repaid over a maximum of 30 years.
The SBA said terms of the loans are determined case-by-case, based on each borrower's ability to repay.
Applications can be submitted on the SBA's website by clicking this link.
Once applications have been submitted, their status can be monitored online.
Officials said if you have any additional questions, contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or email email@example.com.