SBA Disaster Assistance Now Available to Georgia Small Businesses
March 19, 2020
The U.S. Small Business Administration (SBA) announced on Wednesday, March 18, 2020 that it is now offering low-interest federal disaster loans for working capital to small businesses in Georgia that are suffering economic injury resulting from COVID-19.
Assistance is available to small businesses across the entire state, as well as to contiguous counties in Alabama, Florida, North Carolina, South Carolina and Tennessee.
SBA’s Economic Injury Disaster Loans can be used by Georgia’s small businesses to pay fixed debts, accounts payable, payroll and other bills that a business cannot pay due to COVID-19’s impact.
Eligibility for an Economic Injury Disaster Loan is based on the financial impact of COVID-19 on a business. These loans have an interest rate of 3.75 percent for small businesses and 2.75 percent for private non-profit organizations.
The deadline to apply for an Economic Injury Disaster Loan is Dec. 18, 2020. To apply online, visit https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance.
To discuss if an SBA Economic Injury Disaster Loan is a good fit for your business, contact Aprio’s Coronavirus Loan & Capital Assistance team.
Disclaimer for services provided relative to SBA programs and the CARES Act
Aprio’s goal is to provide the most up to date information, along with our insights and current understanding of these programs and regulations to help you navigate your business response to COVID-19.
The rules regarding SBA programs are constantly being refined and clarified by the SBA and other agencies In certain instances, the guidance being provided by the agencies and/or the financial institutions is in direct conflict with other competing guidance, regulations and/or existing laws.
Due to the evolving nature of the situation and the lack of final published rules, Aprio cannot guarantee that additional changes or updates won’t be needed or forthcoming and the original advice given by Aprio may be affected by the evolving nature of the situation.
You need to evaluate and draw your own conclusions and determine your Company’s best approach relative to participation within these programs based on your Company’s specific circumstances, cash flow forecast and business strategy.
In situations where resources are provided by third parties, those services should be covered under a separate agreement directly with that service provider. Aprio is not responsible for the actions of any other third party.
Aprio encourages you to contact your legal counsel to address the legal implications of the impact of the CARES Act and specifically your participation in any of the SBA programs.
About the Author
Tommy is the partner-in-charge of Aprio's Retail, Franchise and Hospitality group. His practice focuses on small and mid-sized retail, franchise and hospitality companies and real estate firms. Tommy has expertise in corporate structuring arrangements, multi-state and international tax planning, and corporate and individual tax mitigation.