Governor Steve Bullock today announced that small businesses across Montana impacted by the novel coronavirus (COVID-19) are now eligible to apply for emergency loans through the Small Business Administration.
“We are monitoring the impacts of coronavirus in real time – both from a public health perspective and an economic health perspective,” Governor Bullock said. “Ensuring that small businesses in Montana have access to capital and resources that will allow them to weather temporary closures and bounce back from critical quarantine efforts is paramount to my administration.”
This week, the governor submitted Montana’s request for business assistance through the SBA’s Economic Injury Disaster Loan program. Access to that program has been approved.
Businesses are now eligible to apply for up to $2 million in 30-year loans with an interest rate of 3.75 percent. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits.
Businesses may now apply directly to the SBA’s Economic Injury Disaster Loan program here: https://www.sba.gov/funding-programs/disaster-assistance.
More information about the Economic Injury Loan Program
•If a small business has suffered substantial economic injury as a result of COVID-19, it may be eligible for financial assistance from the U.S. Small Business Administration.
•Small businesses and small agricultural cooperatives that have suffered substantial economic injury may be eligible for the SBA’s Economic Injury Disaster Loan (EIDL) Program.
•Substantial economic injury is the inability of a business to meet its obligations as they mature and to pay its ordinary and necessary operating expenses.
•An EIDL can help meet necessary financial obligations that a business could have met had the disaster not occurred.
•It provides relief from economic injury caused directly by the disaster and permits the business to maintain a reasonable working capital position during the period affected by the disaster.
•The SBA provides EIDL assistance only to those businesses that SBA determines are unable to obtain credit elsewhere.
•The loan amount will be based on the business’ actual economic injury and financial needs.
•The interest rate on EIDLs is currently at 3.75 percent per year.
•The term of the loans cannot exceed 30 years.
•Terms and conditions will be determined by the business’ ability to repay the loan