by Johari Hamilton
The Small Business Administration (SBA) is offering “low-interest federal disaster loans for working capital to Tennessee small businesses suffering substantial economic injury as a result of the Coronavirus.”
According to the U.S. Chamber of Commerce, “The Coronavirus Preparedness and Response Supplemental Appropriations Act provides $8.3 billion in emergency funding for federal agencies to respond to the coronavirus outbreak, enabling the U.S. Small Business Administration to offer $7 billion in disaster assistance loans to small businesses impacted by COVID-19.”
Capital resources include but are not limited to: cash advance, debt relief, and loans through a variety of SBA programs.
The Express Disaster Bridge Loan is designed to help small business owners who have an immediate need for cash (up to $25,000) and an existing “business relationship with an SBA Express Lender.”
In addition, the Economic Injury Disaster Loan (EIDL) advance (up to $10,000) is also available to small business owners and will provide “economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.”
Christopher McKeehan, Tennessee Deputy Director, of the Small Business Administration encourages owners to “lean on SBA and resource partners - disaster planning/execution.”
Disaster preparedness will be an essential part of the future business plan.
“Work with our Small Business Development Centers (SBDC) to strategically plan at least seven years ahead to be prepared for the unexpected/ borrow money when you don’t need it rather than when you do” advised McKeehan.
Despite the changes and challenges small businesses face, there is hope.
“We receive the latest guidance and training from SBA so we are then able to share what we know to better assist small businesses with their applications,” said Rory Thomas, executive director, Tennessee Small Business Development Center (Memphis Branch).
Many will experience “survival and overcoming the biggest challenges of entrepreneurship,” added Mckeehan.
Johari Hamilton is a content writer for MSBQ. She can be reached at firstname.lastname@example.org.