The State of Ohio is taking action to help small business affected by the coronavirus pandemic.
On March 17, Ohio Gov. Mike DeWine and Lt. Gov. Jon Husted sent a letter and application to the U.S. Small Business Administration (SBA) to qualify the State of Ohio for the Economic Injury Disaster Loan program.
This federal program will enable small businesses and non-profits throughout the state impacted by the outbreak of COVID-19 to apply for low-interest loans for up to $2 million in assistance, which can provide vital economic support to help overcome the temporary loss of revenue they are experiencing.
“We understand the steps being taken to keep all Ohioans safe will have a significant impact on businesses across the state, which is why we are leaving no stone unturned to identify every possible way we can support them during this time,” said Gov. DeWine. “Ohioans are resilient. We will get us through this.”
The Economic Injury Disaster Loans may be used by Ohio small business owners and non-profits to pay fixed debts, payroll, accounts payable and other bills, which cannot be paid because of the disaster’s impact. The interest rate is 3.75 percent for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75 percent.
Once the state is qualified for the program, the Ohio Development Services Agency (Development) will work with the SBA to notify entities the they can now apply for loans. To keep payments affordable, these loans are long-term, with up to a maximum of 30 years for repayment. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
“We know Ohio businesses are struggling and we are going to do everything we can to help them,” said Lt. Gov. Jon Husted. “We have taken quick steps to ensure the health and safety of Ohioans, and we are going to give that same attention to ensuring our businesses are successful and jobs remain available. I encourage the SBA to quickly approve our application.”
Development coordinated with the Ohio Emergency Management Agency and reached out to local businesses for information to compile the application.
“In the last three days, more than 1,500 businesses have shared their stories with us about the challenges they are facing, which informed our application for these disaster loans,” said Lydia Mihalik, Director of Development. “The need is urgent, and we are moving quickly to support Ohio’s small businesses and non-profits.”
Any of the state’s small businesses and non-profits impacted by the ongoing health crisis are encouraged to contact Development at BusinessHelp@Development.Ohio.Gov for assistance.
Additional information about the SBA Economic Injury Disaster Loan program is available at SBA.gov/Disaster.