SBA COVID loans extended until end of year
Congress has extended the deadline for applying for an economic disaster loan through the Small Business Administration until December 31, 2021. Corpus Christi businesses and nonprofits with 500 or fewer employees that have been affected by the pandemic are eligible.
Companies affected by the coronavirus pandemic still have 12 months to apply for an economic disaster loan. The deadline for US Small Business Administration loan applications was extended to December 31 of this year by the COVID-19 relief bill approved by Congress in late December 2020.
So far, around $ 197 billion in low-interest loans have been made by the SBA to small businesses, farm businesses, and nonprofits to help weather losses caused by the pandemic.
Corpus Christi Regional Economic Development Corp. provides a link to the applications and more information about its website at ccredc.com.
“The SBA’s Economic 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 them overcome the temporary loss of income that ‘they are suffering,’ reads EDC’s website. “The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of income. “
Loan terms include an interest rate of 3.75% for small businesses and 2.75% for nonprofits. The loans have a 30-year maturity rate and an automatic, but voluntary, deferral of one year before the start of the monthly payments. However, interest will accrue.
Qualified entities must have 500 or fewer employees and have suffered substantial economic harm as a result of the pandemic. The loan money can be used for working capital and normal operating expenses.
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