SBA COVID-19 Relief Loans for Caterers

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The “Coronavirus Preparedness and Response Supplemental Appropriations Act” that was recently signed by the President, allows for low-interest federal disaster loans to be available to small businesses that are suffering substantial economic injury as a result of the coronavirus (COVID-19).

These loans can provide a crucial cash infusion to help caterers and food industry professionals weather CODID-19 related shutdowns and event cancellations.

WHAT IS A DISASTER RELIEF SBA LOAN?

The U.S. Small Business Administration (SBA) will provide disaster assistance loans for small businesses impacted by COVID-19. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance for a small business. 

WHAT CAN YOU DO WITH AN SBA LOAN?

SBA disaster relief loans are designed to assist small businesses that need access to working capital. You can use SBA loans to pay:

  • Fixed debts 

  • Payroll

  • Accounts payable

  • and other bills that can’t be paid because of the disaster’s impact. 

INTEREST RATES

The interest rate is 3.75% for small businesses without credit available elsewhere. Unfortunately, this means if you have a line of credit with your bank, you will not be eligible. 

Non-profit organizations are also eligible. The interest rate for non-profits is 2.75%.

REPAYMENT

SBA offers loans with long-term repayments in order to keep payments affordable. While terms are determined on a case-by-case basis based upon each borrower’s ability to repay, you may be eligible for up to a 30-year repayment plan. 

WHO IS ELIGIBLE?

Small businesses and non-profit organizations in states or U.S. territories whose governor has requested aid.  

Note: If you have access to a line of credit, you are not eligible.

CURRENT ELIGIBLE AREAS:


Areas eligible for SBA disaster loans are as follows (please refer to the SBA website for the most up-to-date information):

If you do not see your state or county on this list, you may not be eligible for disaster relief loans yet. Please contact your local state representative and governor to request that they apply for these crucial disaster relief loans for your area.

California #16332

Primary Counties: Alameda, Calaveras, Contra Costa, Los Angeles, Sacramento, San Diego, San Francisco, San Mateo, Sonoma, Tuolumne

Contiguous Counties:

  • CALIFORNIA: Alpine, Amador, El Dorado, Imperial, Kern, Lake, Madera, Marin, Mariposa, Mendocino, Merced, Mono, Napa, Orange, Placer, Riverside, San Bernardino, San Joaquin, Santa Clara, Santa Cruz, Solano, Stanislaus, Sutter, Ventura, Yolo 

Connecticut #16335

Primary Counties: Fairfield, Hartford, Litchfield, Middlesex, New Haven, New London, Tolland, Windham

Contiguous Counties:

  • MASSACHUSETTS: Berkshire, Hampden, Worcester

  • NEW YORK: Dutchess, Putnam, Westchester

  • RHODE ISLAND: Kent, Providence, Washington

Maine #16334

Primary Counties: Androscoggin, Aroostook, Cumberland, Franklin, Hancock, Kennebec, Knox, Lincoln, Penobscot, Sagadahoc, Somerset, Waldo, Washington, York

Contiguous Counties:

  • MAINE: Oxford, Piscataquis

  • NEW HAMPSHIRE: Carroll, Rockingham, Strafford

Washington #16333

Primary Counties: Grays Harbor, Island, Jefferson, King, Kitsap, Klickitat, Mason, Pacific, Pierce, San Juan, Thurston, Walla Walla, Whatcom, Whitman

Contiguous Counties:

  • WASHINGTON: Adams, Asotin, Benton, Chelan, Clallam, Columbia, Franklin, Garfield, Kittitas, Lewis, Lincoln, Okanogan, Skagit, Skamania, Snohomish, Spokane, Wahkiakum, Yakima

  • IDAHO: Benewah, Latah, Nez Perce

  • OREGON: Gilliam, Hood River, Morrow, Sherman, Umatilla, Wasco

HOW DO YOU APPLY?

  1. Go to: https://disasterloan.sba.gov/ela/

  2. Click the red button to see if you're eligible. (Only certain counties are eligible right now.) 

  3. Once you confirm that you’re eligible, click the blue button to register. 

    1. NOTE: You must first register as an individual so the government can confirm your identity. Once your identity is confirmed, you can apply as your business. 

HAVE ADDITIONAL QUESTIONS?

Contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.