COVID – 19 has changed the way we do business, and corporate law and business law is changing. Social Distancing, shelter in place, and quarantines have shifted brick and mortar businesses to virtual storefronts overnight. The pandemic has also hurt a lot of businesses that haven’t been able to make the shift. The good news is that the Small Business Administration (SBA) has relief available.
The SBA has several low interest loans available for Atlanta businesses, and in some cases individuals, who have suffered an economic injury caused by a state of emergency. These loans existed before the current pandemic disaster. The Economic Injury Disaster Loan (EIDL) is intended to provide Small Businesses, Small Agricultural Cooperatives, and most private nonprofit organizations with necessary working capital, after a disaster, to survive until normal operations resume.
The maximum amount available is $2 million, which can be used to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. It is based on the actual economic injury and the company’s financial needs.
The EIDL’s interest rate will not exceed 4% per year, and the term will not exceed 30 years, and the repayment term will be determined by the business’s ability to pay.
EIDL is only available to small businesses that the SBA determines they are unable to obtain credit elsewhere.
LEGAL DISCLAIMER:The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation.