Gov. Bill Lee is asking the U.S. Small Business Administration for Economic Injury Disaster Loan assistance to employers who have suffered financially as a result of the novel coronavirus.
Once approved, small businesses and nonprofit organizations affected by the COVID-19 crisis can apply for up to $2 million in low-interest loans.
“While I am pleased with our progress on targeted relief for small businesses, we know this is just a first step from our federal partners to provide liquidity to our businesses,” the governor said. “We are in constant dialogue with our delegation members to ensure that federal aid is responsive to our concerns and needs.”
The loans can be used to pay fixed debts, payroll, accounts payable or other bills that can’t be paid due to the disaster’s impact. Interest rates for the loans are 3.75% for small businesses and 2.75% for nonprofit organizations.
“Small business is the backbone of Tennessee’s economy, and right now they have been faced with unprecedented challenges,” said Bob Rolfe, commissioner of the Tennesee Department of Economic and Community Development. “We will continue to provide the necessary resources, information and support to help our small businesses overcome these obstacles as quickly as possible.”