Last week, Governor Tate Reeves set emergency loans in motion by requesting a disaster declaration from the U.S. Small Business Administration (SBA). As a result, Mississippi businesses being impacted by the COVID-19 are now eligible to apply.
Governor Reeves sent the letter to SBA Director Kim Fleming, declaring the disaster in order to make loans available for affected businesses through the Economic Injury Disaster Loan program.
“Mississippians are resilient, but they shouldn’t have to weather this storm alone. Small businesses and their employees are the backbone of our state’s economy and deserve a helping hand during this trying time. We are working closely with the U.S. Small Business Administration to activate the Economic Injury Disaster Loan program so we can protect our small businesses and their communities,” said Governor Tate Reeves in a press release.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
“Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the Coronavirus (COVID-19) since Jan. 31, 2020, may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” said Jovita Carranza, SBA administrator, in a press release.
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 and are designed to overcome a temporary loss of revenue, the SBA said.
According to the SBA, eligibility for Economic Injury Disaster Loans is based on the financial impact of the Coronavirus (COVID-19). The interest rate is 3.75 percent for small businesses. The interest rate for private non- profit organizations is 2.75 percent. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
According to the governor’s office, each county emergency management agency can also provide copies of the SBA Economic Injury Disaster Loan. That paperwork will then be submitted to the Mississippi Emergency Management Agency (MEMA) to hand over to SBA.That paperwork is to be submitted to MEMA State Coordinating Officer, Todd Demuth at tdemuth@mema.ms.gov.
[Photo credit: @tatereeves on Instagram]
