By Jacqueline Pitts, The Bottom Line
The U.S. Small Business Administration announced Friday that Kentucky was accepted into the Small Business Disaster Relief Loan Program. Kentucky is one of the many states needing help from the federal government to find avenues for local small businesses to weather the ever-changing economic climate.
Funding for the program comes from the U.S. Small Business Administration (SBA) and is designed to help cover costs that small businesses are incurring due to the spread of COVID-19.
Applicants would be able to apply for up to $2 million. The funding is aimed at helping employers pay fixed debts, pay employees, and any other expenses occurring as a result of the coronavirus pandemic.
Interest rates are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations.
These loans are meant to work as a bridge in crisis moments to allow small businesses to survive during an economic downturn and are an unprecedented action during a national health crisis.
The news of Kentucky qualifying for the loan programs comes on the heels of reports that state more than 9,000 Kentuckians filing for unemployment insurance in a single day earlier this week. Many of these claims come from employees of small businesses after restrictions were put into place to slow the spread of COVID-19.
Find more resources for business owners on kychamber.com/coronavirus.