Construction Reporter
  • Home
  • Services
    • Planroom
    • Printing
    • Project Upload
    • Architects & Owners
    • General Contractors
    • Subcontractors
  • Free Trial
  • Become a Member
  • Magazine
  • News
  • Contact Us
  • About
    • About
    • FAQs
    • Privacy Policy

CRITERIA FOR CORONAVIRUS SMALL BUSINESS LOANS CLARIFIED

3/24/2020

0 Comments

 
Picture
The U.S. Small Business Administration has announced a new streamlined process for small businesses eligible for low-interest disaster assistance loans as a result of the COVID-19 outbreak.

“Our goal is to ensure that credit is available to any and all small businesses that need credit but are unable to access it on reasonable terms through traditional lending channels,” Jovita Carranza, the administration of the SBA, said in a statement revealing what is being described as a “relaxed criteria.”

That criteria will allow states to apply for emergency support simply by certifying that at least five small businesses have been economically injured as a result of the disaster in question.

Previously, SBA rules mandated that states could only apply for assistance by certifying that the affected businesses were located in five different counties.

In addition, the SBA is foregoing the requirement that those businesses must exist within counties identified by a state as a disaster area.

Now, according to an SBA press release, “disaster assistance loans will be available statewide following an economic injury declaration.”

This new ruling will apply to all current and future disaster assistance declarations specific to COVID-19.

The loans, as define by the SBA, are designed to provide working capital. With an interest rate of 3.2 percent the loans can be applied to a business’s debts, accounts payable, or payroll obligations.

While the terms of each loan will be worked out on a case-by-case basis, they will all likely allow for a 30-year repayment window.

Altogether, the SBA is expected to offer more than $8.3 billion in COVID-19 related loans.

In a column written for The Hill publication, Rhett Buttle, senior fellow at the Aspen Institute, and Katie Wonnenberg, vice president of the National Association for the Self-Employed, noted that small businesses today employ around 47 percent of the private workforce.

Those businesses are most often made up of auto repair shops, independent retailers, restaurants, and smaller architectural and engineering firms.
​
Buttle and Wonnenberg argue that any disruption along the lines of COVID-19 could prompt such businesses to “close or take on more debt through high-interest lenders.”

By Garry Boulard

0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Get stories like these right to your inbox.
    ​Sign up for our newsletter

    Subscribe

    Archives

    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017

    Categories

    All

AFFILIATES

Picture
Picture
Picture
Picture
Picture
Picture
Picture
Picture
Picture
Picture
Picture
Picture
Picture
HOME
PLANS & PRICING
FREE TRIAL
MAGAZINE​
BECOME A MEMBER
PRINTING SERVICES
FAQS
CONTACT
​ABOUT

TIMELY, RELIABLE NEWS SINCE 1949 ​Construction Reporter
​
4901 Mcleod Rd NE STE 200A
Albuquerque NM 87109


​Phone: (505)-243-9793
Toll Free: (877)-292-5793
​Fax: (505)-242-4758

Copyright © 2022 Construction Reporter
User Agreement   Privacy Policy   Archive Policy
  • Home
  • Services
    • Planroom
    • Printing
    • Project Upload
    • Architects & Owners
    • General Contractors
    • Subcontractors
  • Free Trial
  • Become a Member
  • Magazine
  • News
  • Contact Us
  • About
    • About
    • FAQs
    • Privacy Policy