Small-Business Loans Available to Affected Berkshire Businesses
BOSTON — The state's providing financial relief to small businesses affect by COVID-19 with the creation of a $10 million loan fund.
The Small Business Recovery Loan Fund will provide emergency capital up to $75,000 to Massachusetts-based businesses and nonprofits impacted by the novel coronavirus that have fewer than 50 full- and part-time employees. Loans are immediately available to eligible businesses with no payments due for the first six months. Massachusetts Growth Capital Corp. has capitalized the fund and will administer it.
"As our administration continues to take steps to protect the health and safety of residents, we recognize the hardships facing the small businesses that create the foundation of the state's economy," said Gov. Charlie Baker. "This recovery loan fund is a new resource to help small businesses address emergency needs due to the disruption caused by the ongoing COVID-19 pandemic."
Applications can be made online through the MGCC's website, EmpoweringSmallBusiness.org. Completed applications can be sent via email to mgcc@massgcc.com with the subject line "2020 Small Business Recovery Loan Fund."
The U.S. Small Business Administration is also offering disaster assistance through low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of COVID-19.
SBA acted under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, to declare a disaster following a request received from Connecticut Gov. Ned Lamont on March 15, 2020.
The disaster declaration makes SBA assistance available in the entire state of Connecticut; and the contiguous counties of Berkshire, Hampden, and Worcester in Massachusetts; and Dutchess, Putnam and Westchester in New York; and Kent, Providence and Washington in Rhode Island.
SBA's Economic Injury Disaster Loans offer up to $2 million in assistance per small business and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The interest rate is 3.75 percent for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75 percent. Repayments of up to 30 years are available with terms determined on a case-by-case basis.
Contact the SBA disaster assistance customer service center 1-800-659-2955 (TTY: 1-800-877-8339), email disastercustomerservice@sba.gov or visit SBA.gov/disaster for more information.
Tags: COVID-19, small business,
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