To support small business owners economically affected by the coronavirus outbreak, President Donald Trump signed a legislation under which low-interest disaster loans will be disbursed to them.
The Small Business Administration (SBA) has streamlined the application process for these loans, offering up to $2 million for each affected small business.
The Economic Injury Disaster Loans offer economic support to small businesses during the temporary loss of revenue they are experiencing.
These 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 percent for small businesses without credit available elsewhere.
SBA Administrator Jovita Carranza said his agency will work directly with state Governors to provide targeted, low-interest disaster recovery loans to small businesses that have been severely impacted by the situation.
This is in addition to SBA’s traditional loan programs.
The Department of Treasury has delayed Tax Day until July 15, giving small business owners more time to pay their taxes without incurring interest or other penalties.
Small business employees affected by COVID-19 also will benefit from the Coronavirus Preparedness and Response Supplemental Appropriations Act signed by the President.
Small business owners will receive a dollar-for-dollar tax credit for providing paid leave to such employees.
The Department of Labor issued guidance to allow States the flexibility to pay unemployment benefits when an employer temporarily ceases operations due to the coronavirus outbreak.
As part of negotiations with the Congress, the Administration is looking to provide small businesses loan repayment waiver for a portion of loans they spend on payroll and other expenses, it said in a statement.
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