Small businesses affected by COVID-19 can get federal disaster loans

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OKLAHOMA CITY (KFOR) — Small Oklahoma businesses experiencing significant economic losses due to the coronavirus may receive low-interest federal catastrophe loans as working capital if their state qualifies for such federal funds.

The US Small Business Administration is offering the loans through funding from the Coronavirus Preparedness and Response Supplemental Appropriations Act recently signed by President Donald Trump.

A state must provide documented business losses for at least five companies per county to qualify for the program.

The SBA Statement of Disaster Loan Support for Economic Injury will provide up to $2 million in catastrophe loans to small businesses and private, nonprofit organizations in states eligible for the program.

“These loans can be used to pay off fixed debt, payroll, accounts payable and other bills that cannot be paid due to the impact of COVID-19. The interest rate is 3.75% for small businesses with no other available credit and 2.75% for nonprofits. Businesses with credit otherwise available are not eligible for this program,” the press release said.

The Oklahoma Department of Emergency Management will have a form for businesses to submit his website from Monday.

Continuation of the coronavirus coverage

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