WASHINGTON (WOWK) – The United States Small Business Administration issued revised criteria today for states or territories seeking an economic injury declaration related to the Coronavirus.
The program is part of the Trump Administration’s aggressive, whole-of-government efforts to combat COVID-19 and minimize economic disruption to the nation’s 30 million small businesses, according to SBA Administrator Jovita Carranza.
“We’re very encouraged that banks and financial institutions are responding to the President’s efforts to mobilize an unprecedented public-private response to the Coronavirus outbreak,” he says. “As a result, most small businesses that need credit during these uncertain times will be able to obtain it. However, 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. To that end, the SBA is relaxing the criteria through which states or territories may formally request an economic injury declaration, effective immediately. Furthermore, once an economic injury declaration has been made in a state or territory, the new rules allow the affected small businesses within the state or territory to apply for a disaster assistance loan.”
The more relaxed criteria will have two immediate impacts, including:
A faster and Easier qualification process for states seeking SBA disaster assistance.
Historically, the SBA has required that any state or territory impacted by disaster provide documentation certifying that at least five small businesses have suffered substantial economic injury as a result of a disaster, with at least one business located in each declared county/parish.
Under the just-released, revised criteria, states or territories are only required to certify that at least five small businesses within the state/territory have suffered substantial economic injury, regardless of where those businesses are located.
Also, the criteria will have expanded statewide access to SBA disaster assistance loans for small businesses.
SBA disaster assistance loans are typically only available to small businesses within counties identified as disaster areas by a Governor.
Under the revised criteria issued today, disaster assistance loans will be available statewide following an economic injury declaration. This will apply to current and future disaster assistance declarations related to Coronavirus.
For additional information, please visit the SBA disaster assistance website at SBA.gov/Disaster.