Covid-19 has caused, and will cause, economic hardship for businesses across West Virginia. One possible source of assistance for West Virginia companies may be an economic injury disaster loan from the United States Small Business Administration.
Earlier this month, Congress provided more than $8 billion dollars in supplemental appropriations to be used, in part, to enable the SBA to make billions in low-cost loans to small businesses who have been impacted in areas where a disaster declaration has been made by the Governor and approved by the President. Currently, all of the State of West Virginia is subject to a COVID 19 disaster declaration (but we recommend continuing to check back on the status of West Virginia’s declaration with the SBA, information can be found here).
Economic Injury Disaster Loans are generally for covering small business operating expenses after a declared disaster. The interest rates on these loans is 3.75% for businesses without credit available elsewhere (those with credit available elsewhere are not eligible) and 2.75% for nonprofits and long-term repayment periods are available. Other conditions including, but not necessarily limited to, restrictions on the size of eligible businesses (which varies by industry), the total amount available to each applicant, and the permissible uses for funds obtained through a loan may apply. Application deadlines may also apply.
More relief may be coming as Congress is considering additional supplementary appropriations to combat the economic impact of the coronavirus and it is widely expected that these measures would include small business relief (including the possibility that the SBA may offer disaster loans that could be forgiven under certain circumstances; at present economic injury disaster loans are expected to be repaid).
For now, the SBA is urging small business owners suffering as a result of Covid-19 to explore SBA programs soon, as demand is expected to grow. You can visit the SBA’s website for more information about SBA Covid-19 resources and programs and you can apply online for economic injury disaster loans (you can also reach the West Virginia SBA District Office here).
Please do not hesitate to reach out to Lewis Glasser PLLC if we can be helpful in filling out the application or providing copies of information required in the application.
Matthew R. Bowles
Lewis Glasser PLLC
(O) 304.345.2000 (Ext. 1039) / (D) 304.414.9001
James M. Becker
Lewis Glasser PLLC
(O) 304.345.2000 (Ext. 1014) / (D) 304.414.9014
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This e-update is advertising material intended to provide addressees with informational updates and perspectives regarding matters of interest in connection with the COVID 19 pandemic. This e-update does not constitute legal advice, the provision of legal counseling or any other professional service, nor does it constitute a legal opinion regarding any specific facts. No attorney-client relationship is created by this e-update and this e-update does not constitute an offer to provide legal services.
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