As a result of the Coronavirus, many businesses have financial uncertainty and they are at risk. Because activities were temporarily suspended and quarantine has been implemented to ensure social distance and prevent the spread of the coronavirus. So that, both large and small businesses look forward to the precautions the government will take against the coronavirus crisis.
For Small Businesses
Small businesses badly affected by coronavirus are offered Disaster Assistance Loans by small business administration (SBA). This loan is also called the Economic Injury Disaster Loan.
According to SBA Administrator, Jovita Carranza’s comments, these loans will have low-interest rates and SBA will be in cooperation with state Governors. Also, they will provide economic support up to $2 million to small businesses on the purpose of overcoming the temporary loss of income. Small businesses can use the loans to pay their unpaid invoices, payrolls, and depts because of the impact of Coronavirus. If you haven’t any loans, you can get the loan with a 3.75% interest rate. Additionally, non-profits businesses can get the loan with a 2.75% interest rate. The repayment periods extend up to 30 years.
Offices will be established in many states to support businesses by SBA, and small businesses will be able to find the form on the website and submit as soon as possible.
Apart from that, some states have taken action with their own efforts. For instance, Birmingham City is trying to provide loans with 0% interest rate for small businesses to overcome the economic impact of the coronavirus.
For Large Businesses
Federal Reserve announced that they ready to use all its tools to support the credit flow for businesses that need a loan in these difficult times the coronavirus crisis forces financially each business.
In this process, if your daily or monthly payments are interrupted, and if you have trouble with your financial standing, you should evaluate the offers of banks and lenders to protect your business, as well.
Although states and local governments play a key role in the local economy, banks and lenders should also keep supporting this effort and offer advantageous loans with low-interest rates and flexible repayment conditions.
