The United States is somewhat going through what you would describe as a rough patch, as efforts made to contain the rapidly-spreading COVID-19 has proven more difficult than expected.
As we currently experience massive unemployment rates and financial cuts of workers and business owners due to the notorious COVID-19, calls of assistance have been made by citizens to the government. Some of this assistance has come in the form of stimulus packages given to residents in the US. However, sole proprietors, significantly in New York City, remain disturbed by the constant decline of their small businesses, without any help or business loan options available. Nevertheless, New York residents have been given a chance to smile again, with loan benefits made available to small business owners to support their entrepreneurial growth and development.
The COVID-19 preparedness and Response Supplemental Appropriations bill, which was passed on the 6th of March this year, states that businesses harmed by the coronavirus pandemic might be qualified for Economic Injury Disaster Loans supported by the Small Business Administration.
EID makes low-cost returns district loans available to privatized organizations, and non-benefit associations, with these loans costing up to $2 million. These loans are utilized to pay fixed obligations, creditor liabilities, and different bills that can’t be settled on account of the effects of the pandemic. The financing cost is 3.75% for businesses lacking credit accessibility somewhere else. Nevertheless, companies with access to credits somewhere else are not granted access to such loans. The loan cost is 2.75% for non-benefit associations, with similar terms and limitations. SBA offers loans with long haul reimbursements to keep installments moderate, up to a limit of 30 years. Conditions are resolved dependent upon the situation, because of every borrower’s capacity to settle their debts.
As stated by the law implemented on the 17th of March this Year, Economic Injury Disaster Loans will currently be accessible to businesses in regions that have been announced as focal disaster regions by the Small Business Administration. This incorporates Westchester, Dutchess, Putnam, and various afflicted areas in New York.
With reports that the White House has likely designated $50 billion to finance these loans in light of the coronavirus flare-up, the SBA has also been urged by White House to execute procedures to speed up the assessment of loan forms.