For California businesses still grappling with losses from last month’s vehicle explosion tragedy, the Small Business Administration has stepped in with a lifeline. Announced this past Monday, the SBA is offering federal disaster loans to aid small businesses and nonprofit organizations across five California counties—Imperial, Orange, Riverside, San Bernardino, and San Diego—and neighboring La Paz county in Arizona, as reported by EIN Presswire.
These Economic Injury Disaster Loans (EIDLs), are made available after a successful request from the California Governor’s Office of Emergency Services, led by Director Nancy Ward on July 18th. In the disaster’s wake, businesses without any physical damage but struggling under economic injuries can now seek financial aid. The EIDLs are earmarked to cover working capital needs such as fixed debts, payroll, and payable accounts that could have been managed—if not for the devastating incident occurring May 17-23.
The terms are rather generous. Depending on an applicant’s financial standing, loans can reach up to $2 million. Small businesses can look to interest rates set at 4%, whereas private non-profits have a slightly discounted rate of 3.625%, and the repayment can be stretched over 30 years. What’s more, payments aren’t due until a full year after the loan’s first disbursement—adding a cushion for those just beginning to get back on their feet…