Governor Eric Holcomb has announced Hoosier small businesses are now eligible for financial assistance through the U.S. Small Business Administration. Small businesses impacted by the COVID-19 pandemic could receive funding through the Economic Injury Disaster Loan program.
As part of the program, small business, small agricultural cooperatives and nonprofits across the state can apply for low-interest loans up to $2 million to help offset the temporary loss of revenue due to the outbreak. The loans can be used to pay fixed debts, payroll, accounts payable and other bills incurred during the pandemic.
“Small businesses play a critical role in driving Indiana’s economy forward, with more than 512,000 employing 1.2 million Hoosiers across the state,” Holcomb said in a news release. “These disaster loans will provide much needed financial support to small business owners who are weathering the impact of the coronavirus outbreak.”
The loan interest rates for small business and nonprofits are 3.75% and 2.75%, respectively, with terms up to 30 years, according to the governor’s office.
Those applying for disaster loans must be able to demonstrate credit history, the ability to repay the loan, proof of physical presence in Indiana and working capital losses to qualify.
You can learn more about how to apply for the loans from the SBA by clicking here.
The disaster declaration comes a day after Indianapolis Mayor Joe Hogsett and the Indy Chamber urged small businesses to prepare for federal assistance to become available. The chamber says it is providing guidance related to the federal aid on its recently-launched Rapid Response Hub.
“We launched the Rapid Response Hub on Monday afternoon, and since then, we have received dozens of requests from small businesses impacted by the outbreak. Most questions are focused on the impact this pandemic will have on their employees and families,” Michael Huber, chief executive officer of the Indy Chamber, said in a news release. “Our hub provides up-to-date information, and connections to existing resources, to help impacted businesses navigate this uncertain time. This is an unprecedented situation, but Indianapolis has historically proven that in times of crisis, we come together and help each other across the public, private, and philanthropic sectors.”
The chamber adds its Business Ownership Initiative will transition its focus toward emergency assistance for small businesses. The initiative’s services include free one-on-one business coaching to help guide entrepreneurs and small business owners through the uncertainty caused by the pandemic.
You can watch the press conference from Hogsett and the Indy Chamber below, courtesy of our partners at WISH-TV: