Coronavirus: Federal disaster loans available to small businesses, nonprofits in Alabama

Small businesses suffering from the economic downturn caused by the coronavirus outbreak can apply for Economic Injury Disaster Loans (EIDLs) to meet outstanding expenses and obligations.

Both small businesses and nonprofits can apply for the loans. They offer up to $2 million in assistance and can by paid over as much as 30 years, according to the federal Small Business Association (SBA). SBA says the payment rate is 3.75% for small businesses and 2.75% for nonprofits.

The loans can be used to pay fixed debts, payroll, accounts payable and other expenses that the outbreak makes it difficult to pay during the outbreak, according to Gov. Kay Ivey’s office.

More: Coronavirus in Alabama: Confirmed COVID-19 cases rise to 124

“Small businesses represent the backbone of Alabama’s economy, and many of them need immediate help in these trying times,” Ivey said in a statement.

More information on applications can be found here.

Earlier this week, Democratic U.S. Sen. Doug Jones and U.S. Rep. Terri Sewell, D-Birmingham, asked Ivey to work the Legislature to extend the current unemployment benefit period from 14 to 20 weeks to 26 weeks. Other states, such as Louisiana and New York, have moved to halt or limit foreclosures and evictions during the crisis. A message seeking comment was left with Ivey’s office on Saturday.

Contact Montgomery Advertiser reporter Brian Lyman at 334-240-0185 or blyman@gannett.com.