"You don’t want to be complacent. You always want to be ahead of the curve.” Dr. Anthony Fauci, M.D., Director of National Institute of Allergy and Infectious Diseases
Small and medium-sized businesses impacted by the COVID-19 outbreak and looking for solutions may find some relief from the disaster loan assistance program administered by the U.S. Small Business Administration (SBA). SBA’s Economic Injury Disaster Loan Program provides low-interest loan assistance after a disaster and is designed to provide small and medium-sized businesses with necessary working capital until normal operations can resume.
Because the scale and geographic scope of the coronavirus are unprecedented, Congress and the Trump Administration are considering proposals to expand or expedite the SBA’s ability to provide emergency loan assistance to small businesses suffering economic injury as a result of the current COVID-19 public health emergency. One of the critical challenges facing the SBA will be its ability to process and act on the sheer volume of Economic Injury Disaster Loan applications it will receive in the coming days and weeks. To address that concern, as well as the need for loan assistance by small businesses across the nation, forthcoming coronavirus relief/stimulus legislation may change some of the criteria for the SBA Economic Injury Disaster Loan assistance for businesses impacted by the COVID-19 mitigation measures being implemented by federal, state, and local governments. We will continue to monitor the latest developments and provide updates as warranted on the SBA’s authority to provide economic assistance to small businesses impacted by the COVID-19 public health emergency.
Key elements of the SBA’s Economic Injury Disaster Loan Program are as follows:
In summary, it is important for small and medium-sized businesses to take additional steps now in order to mitigate their risk of suffering negative impacts from the coronavirus. For more information about recommended steps, please contact your Foley relationship partner. For additional web-based resources available to assist you in monitoring the spread of the coronavirus on a global basis, you may wish to visit the CDC and the World Health Organization.
Foley has created a multi-disciplinary and multi-jurisdictional team, which has prepared a wealth of topical client resources and is prepared to help our clients meet the legal and business challenges that the coronavirus outbreak is creating for stakeholders across a range of industries.
Click here for Foley’s Coronavirus Resource Center to stay apprised of relevant developments, insights and resources to support your business during this challenging time. To receive this content directly in your inbox, click here and submit the form.