NJ Businesses Can Get SBA Loans To Stay Alive
Small business owners are feeling the impacts of the coronavirus
As the coronavirus pandemic spreads, more and more Americans are deciding to stay at home. Small business owners are already feeling an endless pinch in sight. (March 18)
Small businesses facing the disaster of the economic impact of the coronavirus pandemic can apply for an emergency lifeline from the US Small Business Administration.
The Small Business Administration is now offering low-interest federal disaster working capital loans to New Jersey small businesses suffering from the The COVID-19 virus pandemic, which is shaking the economy.
Disaster loans, up to $ 2 million, are intended to help a business meet financial obligations and operating expenses that could have been covered had the coronavirus disaster not occurred.
The interest rate is 3.75% for small businesses and 2.75% for private non-profit organizations, with a repayment period of up to 30 years.
“We will be swift in our efforts to help these small businesses recover from the financial impacts of the coronavirus (COVID-19),” Administrator Jovita Carranza said in a statement.
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So far the economic impact has been staggering, especially to small businesses such as restaurants and bars, who have been forced to close their dining rooms to help stem the spread of the virus.
Many try to survive in offer take-out and delivery orders. Others have close their doors. State-ordered restrictions have closed casinos and regional shopping centers. Thousands of employees have been made redundant.
On Monday alone, the New Jersey Department of Labor and Workforce Development received 15,000 jobless claims, a twelve-fold increase from a normal day, as workers laid off from their service jobs sought financial assistance.
Businesses are “extremely strained at the moment,” said Michele N. Siekerka, President of the New Jersey Business and Industry Association. “They are rushing for the resources and the ability to hold out.”
The availability of disaster relief for small businesses and private nonprofits is “good news,” she said. “Our small businesses and nonprofits are at the forefront of their vulnerability.”
Business owners worry about their own survival and the livelihoods of employees who no longer work, said Bill Atklns, president of Monmouth Score, which offers free advice to small businesses
“There’s a ‘we don’t know how it’s going to be’ panic so that’s the biggest problem,” Atkins said.
“We’re trying to help them get through this and how they can best get it,” Atkins said. “This low-cost, long-term loan could be a way to put a band-aid on it now.”
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To his briefing ThursdayGovernor Phil Murphy said he was pleased the state’s application for federal disaster loans for small businesses had been approved. But he also wanted to warn business owners who are considering seeking help.
“I urge all businesses except the hardest hit, those that are literally facing life and death decisions right now, to take a step back if possible,” Murphy said.
“This is actually a lesson we learned in the aftermath of Super Storm Sandy, when homeowners and businesses were pressured to apply for disaster loans only to learn later that they might have been eligible for it. grants that were made available later, ”he said.
Murphy said the state plans to “keep fighting for stimulus packages that include small business grants, and in that we are going to fight to make sure that any loans that are given now can be paid back. later by grant funds, “and will lobby for this in partnership with neighboring states and the New Jersey congressional delegation.
New Jersey is expected to announce its own small business assistance program shortly, the governor said.
The governor urged business owners with questions about the coronavirus to visit the New Jersey Coronavirus Trade Action Center at cv.business.nj.gov.
Those interested in disaster loans can apply online, receive additional disaster assistance information and download apps at catastropheloan.sba.gov/ela.
Applicants can also call the SBA Customer Service Center at 800-659-2955 or email [email protected] for more information on SBA Disaster Assistance.
Business owners who have questions can also request a free business mentor at www.monmouth.score.org.
David P. Willis: [email protected]