Coronavirus: Business Loans Offered To Affected Austin Businesses

AUSTIN, TX — City officials in Austin on Saturday provided details on the availability of small business loans up to $2 million to entitites impacted by the new coronavirus outbreak.

Texas is one of the most recent states to receive a federal disaster declaration for COVID-19 following local and county officials’ efforts to secure the aid, officials said in a press advisory. Small businesses, private non-profits, homeowners, and renters experiencing financial losses due to the spread of the respiratory ailment now known as COVID-19 can now apply for emergency financial assistance through the U.S. Small Business Administration (SBA) Disaster Assistance Loans, officials added.

“In anticipation of our city’s measured steps to contain the spread of COVID-19, our staff worked closely with county and state administrators, as well as our elected officials, to secure this resource for our community,” City Manager Spencer Cronk said in a prepared statement. “We are excited that local small businesses and non-profits have another source of relief from the economic impacts of this pandemic, and we are continuing to evaluate other sources of support to respond to the needs of our local businesses and their employees.”

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The SBA Disaster Assistance Loan Program provides loans up to $2 million for small businesses and private non-profits, at rates of 3.75 percent (for-profit) and 2.75 (non-profit) for terms up to 30 years on a case-by-case basis. The loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact.
Information about program eligibility and online applications are available on SBA’s website: disasterloan.sba.gov.

Officials discussed the loan program during a press conference that was streamed live from City Hall on Saturday at 2 p.m. Here are the ways you can get the video feed:

• Livestream feed ATXN 1: http://www.austintexas.gov/page/watch-atxn-live.
• Facebook Live: www.Facebook.Com/AustinTexasGov.

On March 26, officials said the Austin City Council will consider additional support for local businesses by creating a local Economic Injury Disaster Loan Program. The loan program, which is designed to work as a gap financing in conjunction with an applicant’s request for federal assistance, would provide working capital loans up to $35,000 for Austin businesses that can demonstrate an economic injury associated with the COVID-19 global pandemic, officials explained.

The application process for the Economic Injury Disaster Loan Program would be similar to the SBA Disaster Assistance Loans program, city offficials added.

“We recognize that for many local Austin businesses, the economic impact began with the cancellation of South by Southwest,” Veronica Briseño, Director of City of Austin Economic Development Department, said in a prepared statement. “Our intent for the proposed Economic Injury Disaster Loan Program is to address the economic impact to local businesses and provide support to retain employees until a recovery can begin.”

Resources

• Visit the City of Austin's COVID-19 Community Resources for more information on resources available for local businesses and their employees.
• Stay current on the latest COVID-19 updates for Austin online at www.austintexas.gov/COVID19.
• To learn more about helpful resources, visit www.austintexas.gov/edd and follow @econvitalityatx on Twitter