Many nonprofits are being hit hard due to the coronavirus. During a disaster, especially one of this uncertainty, people are not donating to nonprofits and more people need nonprofits. Many nonprofits are struggling to make their lease or mortgage payments, payroll, or dealing with inventory debts for which they no longer have a market, or faced with the inability to help those in need and fulfill their mission statements. To alleviate the stress on small businesses and nonprofits due to the coronavirus, the government has allowed for small businesses and nonprofits to take out loans to meet financial obligations in Louisiana as of January 31, 2020 (and continuing).
How Can I Apply for a Coronavirus Loan?
If you are a nonprofit you can apply for a government funded loan here:
How Much of a Coronavirus Loan is Available for my Nonproift?
Small businesses affected by COVID-19 can borrow up to $2 million
How Much Do I have to Pay in Interest on a Coronavirus Loan?
The interest rates vary, but cap out at 2.75%
Where Can I Apply for a Coronavirus Loan?
Are there any Requirements to Apply for a Nonprofit Coronavirus Loan?
Here are the Credit Requirements:
- Credit History – Applicants must have a credit history acceptable to SBA.
- Repayment – Applicants must show the ability to repay the loan.
- Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available.SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available.
You will not be eligible if you have not complied with a prior disaster loan.
This post may update some of this information: https://www.kieferandkiefer.com/blog/how-does-the-cares-act-help-me
Kiefer & Kiefer is doing our best to keep our clients and followers informed of any government and social services that may be available during this difficult time. We will be posting updates on our website as we find them, but our Facebook page is the best way to find comprehensive and up to date information as well as links to websites that may provide additional information. You can follow us here: https://www.facebook.com/kieferandkiefer/