Sheldon, Iowa — Many small businesses and non-profits in northwest Iowa, and across the state, are feeling the economic impact of COVID-19, but there could be help on the way.
Sheldon Economic Director Curt Strouth says the SCDC and the City sent out an Economic Hardship Survey to local businesses last week.
(As above)”Last week we had sent out a survey that was released to us from SBA which is the US Small Business Administration. Just trying to see what the economic hardships we were experiencing here locally from our business community in hopes of finding justification of what they’re terming as a disaster declaration for O’Brien County essentially saying that there’s economic hardship. Our businesses aren’t receiving the revenues that they had been receiving prior to the covid-19.”
Strouth says a response to the Disaster Application came this past weekend.
(As above)”In response to that on Saturday just this past Saturday, March 21, they did, the SBA did issue a disaster declaration for not only O’Brien County but for all 99 counties in Iowa because of the result of these business surveys. So on behalf of our office in the city, we appreciate everybody who participated in that because the results of it through it provided a disaster declaration for O’Brien County essentially making businesses eligible to apply for what has come out of it now, which is the SBA Injury Disaster Loan.”
He tells us about the loan program.
(As above)”The SBA Economic Injury Disaster Loans — they’re working capital loans to help small businesses and most private nonprofit organizations meet their ordinary necessary financial obligations that essentially cannot be met as a direct result of the disaster. So these loans are intended to assist through the disaster recovery period.”
Strouth goes into more detail about what area businesses and non-profits will qualify for.
(As above)”Essentially, what businesses and nonprofits are eligible for is there’s been $2 million made available through the governor’s office for businesses to apply for, and the assistance is in the form of a loan, which will have an interest rate of 3.75 fixed for small businesses and 2.75 percent fixed for nonprofits. The law authorizes loan terms up to a maximum of 30 years. However, SBA will actually determine an appropriate installment payment based on the financial condition of each borrower, meaning that everybody’s condition is going to be different and SBA will, in turn, analyze each application singularly. So that review will determine each loan term.”
He stresses that this is a program designed to get money into the hands of struggling businesses and non-profits until a response is in place from the federal government.
(As above)”This program is intended to be a stopgap program through the state until further resources from the federal government start to flow.”
Strouth says the federal response could take 30, 45, or even 60-days to be put into place.
Here’s how to Apply for an SBA Economic Injury Disaster Loan:
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela.
Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard-of-hearing may call (800) 877-8339.
For those wishing to make “paper” submissions, completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
