SBA Offers Disaster Assistance to Small Businesses Impacted by COVID-19

The U.S. Small Business Administration is offering low-interest federal disaster loans for small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19) in the state of Alabama. 

The Economic Injury Loan Program offered through the Small Business Administration (SBA) offers low interest disaster loans for small businesses, including the Real Estate Industry, that will help businesses pay  fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. 

To learn more about the application process, guidelines, and deadlines, please review the documents below. 

The Huntsville-Madison County Chamber of Commerce will also host a free webinar this Thursday, March 26th at 11am on how to apply for the SBA loans. CLICK HERE TO REGISTER

About the Loan
  • Administered by the Small Business Administration (SBA) and the Alabama Small Business Development Network (ASBDC).
  • Low interest disaster loan for small businesses that will help businesses pay their day to day operating expenses only-payroll, taxes, insurance, suppliers, daily payables, etc.
  • The loan cannot be used for projects or to refinance existing debts
  • Maximum allowed is $2 million per company (if the business has multiple companies then multiple applications are required).
  • Available to for-profit companies as well as non-profit companies.
  • Allows up to 30 years for loan repayment.
Eligibility/Criteria:
  • Your business must be physically located in a county that has been declared a disaster area
  • Your business or services that your business offered must be directly affected by the disaster
  • Your business must have suffered a direct impact due to the disaster
  • The business must have less than 500 employees
Requirements of the Loan:
  • Application must be made to the SBA or the ASBDC and supporting documentation must be submitted with the application (refer to the SBA or ASBDC websites listed below)
  • Requires collateral if the loan request is over $25,000
  • Borrower must pledge to repay the loan