The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
These working capital loans may be used to pay fixed debt, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. These loans are not intended to replace lost sales or profits or for expansion.
Borrowers will be required to keep documentation of loan usage for 3 years.
Existing cash reserves will be taken into account when determining loan eligibility/need.