Today, the U.S. Small Business Administration approved an Economic Injury Disaster Loan declaration for Arizona that will help small businesses impacted by COVID-19. Individual businesses can be eligible for up to $2 million through the program.
On Monday, March 16, Arizona Gov. Doug Ducey submitted a request to the federal government for the economic assistance, which is made available through the Coronavirus Preparedness and Response Supplemental Appropriations Act signed by President Trump on March 6, according to a release.
Read the governor’s letter here.
“As we continue to address COVID-19 and prioritize public health, we are working with our federal partners to mitigate the economic impact on Arizona’s small businesses and employees,” said Gov. Ducey. “Businesses suffering substantial economic injury because of COVID-19 can apply for this loan through the Small Business Administration's website by going to SBA.gov/disaster. Our administration stands ready to help," he said.
“Arizona’s small business community is grateful to Gov. Ducey for prioritizing the health and safety of Arizonans while supporting businesses impacted by COVID-19,” said Chad Heinrich, Arizona state director of the National Federation of Independent Business. “Without a doubt, these tough times will take a significant toll on our economy and the livelihood of working men and women throughout the state. This relief will go a long way to repair the damage done and protect Arizona families.”
The loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of COVID-19’s impact.
The interest rate is 3.75% for small businesses without credit available elsewhere. The interest rate for non-profits is 2.75%.
SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay. Small businesses throughout the entire state that fit this criteria are eligible.
Arizona businesses impacted by COVID-19 may apply for the loan here.
The Governor’s letter to the SBA can be found here.