Gov. John Carney submitted on March 16 an application formally requesting the U.S. Small Business Administration to provide Delaware an Economy Injury Declaration, which makes loans available to small businesses and nonprofit organizations in New Castle, Kent and Sussex counties.
In his letter to the SBA, Carney said the impact of the novel coronavirus on small businesses would likely be significant.
“We know that the public health restrictions we put in place to reduce the spread of coronavirus will hit Delaware’s small business community especially hard,” said Carney. “We will continue to work with the Small Business Administration, and with our congressional delegation and state agencies, to provide relief to those small businesses impacted during this time.”
Carney directed the Delaware Division of Small Business and Delaware Department of State to look for additional opportunities to support the state’s 25,000 small businesses.
Once the state’s application to the SBA is approved, the low-interest loans of up to $2 million per business will be available for many small businesses and nonprofits that have suffered substantial economic injury as a result of the COVID-19 outbreak.
They are designed to help with the temporary loss of revenue these businesses and nonprofits are experiencing. The loans may be used for working capital expenses such as payroll, fixed debts and accounts payable, as well as other bills the business or nonprofit is currently unable to pay because of the impact of COVID-19.
For more on SBA Economic Injury Disaster Loans, visit bit.ly/33urYu3.