DES MOINES, Iowa (KCAU) – Iowa Governor Kim Reynolds announced on Saturday that the U.S. Small Business Administration (SBA) has issued a disaster declaration for the state as of January 31 and continuing.
The declaration allows pandemic-impacted small businesses in Iowa to apply for low-interest support loans.
It comes after Governor Reynolds submitted a federal funding request via the SBA’s Economic Injury Disaster Loan program.
“This SBA Disaster Loan program is vital in assisting our small businesses that have been so heavily impacted by these unprecedented times. 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,” said Gov. Reynolds.
The SBA is making loans available across the state to small businesses and private, non-profit organizations to help alleviate economic injury that’s caused by the coronavirus.
SBA’s Economic Injury Disaster Loans will offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue that they’re expecting.
These loans may be used to:
- Pay fixed debts
- Accounts payable
- Other bills that can’t be paid because of the COVID-19 impact
The interest rate is 3.75% for small businesses. For non-profits, the interest rate is 2.75%.
SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years.
The terms of repayments are determined on a case-by-case basis, based on each borrower’s ability to repay.
For loan applications, go to the SBA’s website. Afterward, applicants can keep an eye on the status of their applications online after submission.