The U.S. Small Business Administration has approved more than 120,000 Economic Injury Disaster Loans for $7 billion to Garden State small business owners and nonprofits affected by COVID-19.
New Jersey EIDL loan approvals ranked seventh behind only California, Florida, New York, Texas, Georgia and Illinois, according to SBA Regional Administrator Steve Bulger.
“SBA’s EIDL program has provided over 3.5 million small business owners nationwide with $192 billion in loans,” said Bulger in a prepared statement. “The SBA Office of Disaster Assistance is reaching all sectors of small businesses, including agricultural businesses and nonprofit organizations, by providing them a lifeline to help meet their financial obligations and operating expenses that could have been met had COVID-19 not occurred.”
Small businesses are using EIDL loans for up to six months of working capital and operating expenses such as the continuation of health care benefits, rent, utilities, fixed debt payments.
The agency is still accepting EIDL applications from all qualified small businesses, including agricultural businesses, and private nonprofit organizations. Small businesses will receive a fixed 3.75% interest rate on an EIDL, while nonprofits are locked into a 2.75% APR. Thirty-year terms are available with no pre-payment penalties as well.
Payment may be deferred for up to one year.
“There is a lot more work to do, but when you combine the total EIDL and Paycheck Protection Program loans together, small business owners and nonprofits throughout New Jersey have received over 277,000 loans for $25 billion,” said SBA New Jersey District Director Al Titone in a prepared statement. “I would certainly categorize that as significant economic impact spearheaded by the federal government, putting our small business community on the road to recovery.”
Small business owners and nonprofit organizations can apply for EIDL loans online.