Disaster loans can help small businesses

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Ky. center the best place to start process, City officials say

COVINGTON, Ky. - City of Covington officials are reminding small businesses and non-profits affected by the coronavirus pandemic about a loan program offered through the U.S. Small Business Administration.

 
The Kentucky Small Business Development Center is ready to assist business owners with the SBA’s Economic Injury Disaster Loan application, contingency planning and financial management/cash flow planning.
 
“Your tax dollars have already paid for their time, so please contact them to request assistance and help your business navigate through this crisis,” Covington Economic Development Project Manager Ross Patten said.
 
Most businesses qualify, including hotels, recreation facilities, manufacturers, restaurants, retailers, rental properties, and others, Patten said.
 
“We encourage all Covington businesses and non-profits that have been impacted by COVID-19 to contact the SBDC and apply for the SBA Disaster Loan as soon as possible,” Patten said. “Applying does not commit you to the loan, but it provides options. As long as you have been affected by Covid-19, you can and should apply.”
 
About the loans
  • Disaster loans can be used for fixed debt, payroll, accounts payable, and other bills that you would have paid if not for the disaster (such as rent payments, mortgage payments, equipment payments, etc.)
  • Loans are for up to $2 million.
  • The rate is 3.75% for businesses and 2.75% for non-profits, up to 30 years.
  • There are no collateral requirements for loans under $25,000, but there will be collateral requirements for loans over $25,000.
 
To contact the SBDC and learn more, visit https://www.ksbdc.org/coronavirus
 
U.S. Rep. Thomas Massie, who represents Covington and the rest of Northern Kentucky in Congress, said his office could serve as an additional resource and guide in understanding and applying for the disaster loans and other federal assistance.
 
“My staff is on call and ready to assist any small business owner in Kentucky’s Fourth District with these new COVID-related programs,” the Congressman said.
 
To reach the specialist in Rep. Massie’s office on SBA’s Disaster Loan Assistance, call (859) 426-0080.

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