Coronavirus: How LI Small Businesses Can Get Low-Interest Loans

LONG ISLAND, NY — The U.S. Small Business Administration is offering low-interest federal disaster loans to small businesses in New York suffering substantial financial loss due to the new coronavirus. Eligibility for economic injury disaster loans, as they're called, are based on the economic toll the virus, which causes the COVID-19 disease, has had on businesses.

The interest rate is 3.75 percent for small businesses and 2.75 percent for private nonprofits, according to the federal agency. Loan repayments are offered up to 30 years and are available to merchants without the financial ability to offset the coronavirus impact without struggling.

Jovita Carranza, the agency administrator said, small businesses, private nonprofits of any size, small agricultural cooperatives and small aquaculture enterprises may qualify for loans of up to $2 million to help meet financial obligations and operating expenses, which could have been met were it not for the coronavirus.

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The loans can be used to pay fixed debts, payroll, accounts payable and other bills that can't be paid because of the COVID-19 impact, according to Carranza. The deadline to apply for the loan is Dec. 21, 2020.

"Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing," Carranza said in a news release. "SBA is strongly committed to providing the most effective and customer-focused response possible to assist New York small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of the Coronavirus (COVID-19)."

SBA Customer Service representatives will answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process if you call 1-800-659-2955.

Some requirements include that applicants have a credit history acceptable to the SBA, they have the ability to repay the loan, and collateral will be required for all loans over $25,000. Applicants who did not comply with previous SBA loan terms may be declined. Economic Injury Disaster Loans also cannot be used to refinance long term debts.

The interest rate is determined by formulas set by law an

Merchants can apply online, receive additional disaster assistance information and download applications on the disaster loan web page. Applicants may also call the agency's customer service center at 800-659-2955 or email disastercustomerservice@sba.gov for more information. Those who are deaf or hard of hearing may call 800-877-8339. For complete details on SBA, visit its website.d is fixed for the life of the loan. The program's maximum interest rate is 3.75 percent.

The full loan fact sheet related to the coronavirus can be viewed here.

Small businesses across Long Island have had to adapt to life under the coronavirus by making sweeping changes. Restaurants and bars are primarily offering takeout, curbside pickup and/or delivery after on-premises service was banned March 16 in an attempt to slow the spread of the coronavirus. Several merchants are serving alcohol to-go or delivering it after the New York State Liquor Authority temporarily relaxed its restrictions.

Gyms across the island have frozen memberships, taken to video conferencing services to offer personalized instruction or have made home workout videos available online or on apps.

Financial relief may soon be coming to these businesses.

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