Should your business consider an SBA loan?
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By Beth Bear
Director Jersey County Business Association
There have been many State and Federal funds available to businesses during the pandemic. While these programs have been helpful to those who received these funds, there are notably fewer and fewer grant opportunities for businesses. Now may be the time to consider a Small Business Administration (SBA’s) Economic Injury Disaster Loan (EIDL).
The EIDL is a low-interest federal loan issued by the SBA to alleviate economic injury small businesses or private nonprofits are experiencing injury and, in this case, injury caused by the Coronavirus (COVID19). The interest rate is 3.75% for small businesses and the interest rate for nonprofits is 2.75%. The loan term is 30 years and there is no prepayment penalty.
These loans can be used to pay for ‘working capital’ of a business. Working capital loans are generally used to pay day-to-day expenses of the business. These might include salaries, inventory, rent, utilities, and short-term debt or long-term debt payments, for example.
Particularly if you have accrued debt during the pandemic to keep your business open, the EIDL may be a good fit for you. And the JCBA can help you to apply for an EIDL as part of our work as a community navigator. If you’d like more information, you can visit www.sba.gov or call the JCBA at 618-639-5222. The State of Illinois will also be holding several webinars with further information about EIDL, and further information on those can be found at www.jcba-il.us/eidl .
The JCBA will continue to help businesses in Jersey, Calhoun, and Greene Counties to access funding, regardless of their membership status through our work with the State of Illinois Community Navigator Program. We are here to support our small businesses to access to grants, financial planning, marketing outreach, and technical assistance.
