Local Businesses Can Now Apply for Federal SBA Loans

Published Saturday, March 21, 2020 3:00 pm

On Friday afternoon the Small Business Administration (SBA) officially declared Kentucky for statewide disaster certification for the Small Business Disaster Relief Loan Program. The SBA will now offer low-interest federal disaster loans for working capital to the state’s small businesses suffering substantial economic injury as a result of the COVID-19 (coronavirus).

“This is good news for our small businesses and non-profits,” said Sandra Wilson, President of the Paducah Area Chamber of Commerce. “We have been monitoring this all week and providing information to our small businesses about applying. The SBA had encouraged them to get their applications started in anticipation of the state receiving this declaration.”

“We have also been encouraging our businesses to talk to their local banker or financial provider about their options. We want to be sure all of our businesses get the help they need during these trying times,” Wilson said. “Our website, paducahchamber.org, has the links on it to find the SBA application and other documents to help with the application process. We also plan to offer a conference call this week with the Kentucky SBA office for more information and ‘how to apply’ assistance.”

Applicants would be able to apply for up to $2 million. The funding is aimed at helping employers pay fixed debts, pay employees, and any other expenses occurring as a result of the coronavirus pandemic. Interest rates are 3.75 percent for small businesses and 2.75 percent for private nonprofit organizations. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.

SBA Administrator Jovita Carranza said, “SBA is strongly committed to providing the most effective and customer-focused response possible to assist small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of the Coronavirus.”

The Paducah Chamber’s COVID-19 website provides resources for local business owners and employees on a variety of topics ranging from unemployment insurance filing instructions to signage needed for businesses remaining open to a list of services currently being provided by local businesses. The Chamber will be hosting recurring calls available to the local business community beginning on Tuesday. The initial call will serve as an open forum for businesses to share the topics of highest concern and importance to the sustainability of their business. Based on the feedback, the Chamber will set a calendar of recurring calls with local experts that can offer guidance.

For additional information specific to the SBA disaster assistance, go to SBA.gov/disaster-assistance, call 1-800-659-2955 or e-mail disastercustomerservice@sba.gov
For more information from the Paducah Chamber, go to paducahchamber.org

 

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