The U.S. Small Business Administration has approved the state of Ohio’s application to qualify for the Economic Injury Disaster Loan program as a result of the COVID-19 pandemic.
The approval was announced Thursday afternoon in a joint email from U.S. Sens. Rob Portman (R-Ohio) and Sherrod Brown (D-Ohio) that “applauded SBA Administrator Jovita Carranza’s swift approval of Ohio’s application.”
Carranza’s action means that small businesses and nonprofits in Ohio can now apply for up to $2 million in low-interest loans at
“This is good news for Ohio’s small businesses and nonprofits,” Portman and Brown said in a joint statement. “This quick approval is critical to ensure that our small businesses and nonprofits have the necessary economic support to overcome the significant challenges created by this public health crisis. This funding is designed to help them weather this storm and the resulting economic fallout.”
SBA Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest \rate for nonprofits is 2.75%.
The federal agency offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.