The State of Ohio announced the U.S. Small Business Administration (SBA) has approved their request to allow small businesses and nonprofits in Ohio to apply for low-interest, long-term loans of up to $2 million through the SBA’s Economic Injury Disaster Loan program.
“Timing is everything as we navigate this crisis,” said Gov. Mike DeWine. “We have to move quickly to not only ensure that Ohioans are safe, but also that they have the necessary support in place to weather this difficult situation. I appreciate the quick response by federal officials to provide the state’s small businesses and nonprofits with access to this resource.”
The Economic Injury Disaster Loans may be used by Ohio small business owners and nonprofits to pay fixed debts, payroll, accounts payable and other bills, which cannot be paid because of the impact of the coronavirus pandemic. The interest rate is 3.75 percent for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for nonprofits is 2.75 percent.
To keep payments affordable, the loans are long term, with up to 30 years for repayment. Terms are determined on a case-by-case basis, based on each borrower’s ability to repay.
“Governor DeWine and I are aggressively working to ensure that the state’s economy remains strong and is well-positioned once this health crisis passes,” said Lt. Gov. John Husted. “I encourage business owners and nonprofits to apply for this assistance if needed, and to continue to reach out to let us know how we can help.”
Loan applications are available at SBA.gov/Disaster.