Small businesses across the U.S. are hurting, with many proprietors considering shutting their doors. Relief is on the way from the U.S. Small Business Administration, which now offers loans of up to $2 million for qualifying businesses.
“These loans come from the treasury, people don’t have to go through a bank,” said SBA Spokesperson Cynthia Cowell. “They can also defer the first payment for up to a year and if they currently have loans that is deferred.”
Cowell said many businesses are reluctant to take on debt, so the SBA has made the process and terms it as easy as possible. So far, with the new rates, she said demand has been high.
"We have had a lot of people calling and applying online. We really encourage people to do so," she said.
Businesses aren’t required to take the whole loan, only what they need. The interest for small business loans is set at 3.75% and 2.75% for nonprofits. People can apply over the phone or online.
“Since the cap is at $2 million, this really is for small businesses and can help them,” said Cowell. “I’m thinking it should be no more than a year to get things back on track.”