Billy Long: How the U. S. Small Business Administration is helping people during COVID-19 emergency

(From Seventh District Congressman Billy Long)

The spread of the Coronavirus has created an unprecedented time of uncertainty for businesses across the United States.

Small business owners are now faced with making difficult decisions in the wake of mandated closures of non-essential businesses and some are faced with the reality that they may have to close their doors permanently. 

The U.S. Small Business Administration (SBA) recognizes that small businesses are struggling and, with the help of Congress, is making funds available to those businesses.

On March 21st, at the request of the Missouri Governor, the SBA declared an economic emergency for the state due to the Coronavirus. 

This declaration means that every small business in the state now can apply for SBA disaster loans to help alleviate the financial stress caused by Coronavirus. 

Any small business (a business with a maximum of 250-1,500 employees depending on the industry), small agriculture co-op, or small non-profit may apply for these loans. 

When SBA gives out a loan, the payments will be deferred for up to one year to allow businesses the opportunity to start back up without looming payments.

Traditionally, the SBA reserves disaster declarations for natural disasters that cause physical damage to a business. 

In this instance, SBA rightfully recognizes the devastating economic impact the Coronavirus has had on small businesses across the nation and decided an economic disaster declaration made the most sense. 

If you wish to apply for a loan through SBA, the application includes questions about physical damage to property. SBA has advised my office that small businesses applying for a loan can ignore questions about physical damage during the application process. 

These loans will provide businesses with up to $2 million in working capital loans that can be a vital lifeline to help businesses overcome revenue losses and save thousands of jobs across the nation.

Small businesses are the lifeblood of the nation and small business owners need our support now more than ever. Congress and the Trump Administration are working tirelessly during this crisis to ensure small businesses can get the capital they need to survive. 

The CARES Act, which is phase three of the economic stimulus package negotiated this week, will provide hundreds of billions in additional funding for SBA loans, including loans from private lenders that are federally backed by the SBA. 

I encourage all small business owners that have been substantially impacted by this health crisis to get advice from their financial advisers or current lenders regarding whether they should move forward with a federally backed loan from a private lender or a direct loan from SBA. If you choose to pursue a direct loan from SBA, you can apply here sba.gov/coronavirus. If you choose to pursue a private, federally backed loan, consult with your lender.

I applaud the Trump Administration’s effort to prioritize the health of the American people and our economy during this pandemic, and I will continue to be an advocate for small businesses during this crisis and beyond.