MADSION, Wis. (WMTV) -- The U.S. Small Business Administration (SBA) has approved Wisconsin’s request for small businesses affected by the COVID-19 pandemic to access low-interest federal disaster loans as of Friday evening.
“This is very good news for Wisconsin businesses that have already suffered financial losses due to the COVID-19 outbreak,” Wisconsin Governor Tony Evers said. “With the SBA loans now available to our state, small businesses and their employees have a little more certainty over their financial futures. This is another step in providing much-needed assistance to Wisconsin's small businesses.”
With unprecedented demand for the loans nationwide, processing of the applications may be delayed, according to Evers.
“We are encouraging business owners to reach out to SBA’s partners and to SBA’s offices with their questions to help the loan application process go as smoothly as possible,” Wisconsin's SBA district director, Eric Ness said.
Under the Economic Injury Disaster Loan (EIDL) program, businesses and non-profits may qualify for up to $2 million in loans to cover losses resulting from the pandemic. The interest rate on the loans is 3.75% for for-profit businesses and 2.75% for nonprofits. Participants may be able to extend payments for up to 30 years, according to the federal approval.
Businesses and non-profits can begin their loan applications here. The Wisconsin Small Business Development (SBDC) Network and partners are helping small businesses apply for federal disaster loans to mitigate the substantial economic injury as a result of the COVID-19 pandemic, according to the release.
The Wisconsin SBDC, a resource partner of the SBA, has created a web page to help business owners understand the qualifications and application process. That web page is available here.
Consultants across the network’s 13 locations are working remotely via phone, email and virtual tools to assist.