As the coronavirus forces shops and restaurants to either close or cut back on operations, Gov. John Carney is requesting federal assistance for small businesses.
Carney submitted an application to the U.S. Small Business Administration Monday asking it to provide Delaware an Economy Injury Declaration.
That will make low-interest loans available to Delaware small businesses and nonprofit organizations in all three counties affected by COVID-19.
Carney’s request said the impact of the novel coronavirus would likely be significant on small business.
If the SBA application is approved, many small businesses and nonprofits hit hardest by the pandemic can get the low-interest loans of up to $2 million per business.
The director of SBA’s Delaware District Office John Fleming says they are trying to get loans out to as many businesses as possible.
"This is really just recovery mode, this is not a loan to grow, this is just a loan to survive," said Fleming. "We are as liberal as we possibly can be, and still staying within our guidelines which are very liberal."
Fleming adds applications are not live yet. That will happen about 48 hours after Carney’s request.
Fleming tells businesses what they should be applying for in any loan.
"Assume that you need money to get yourself -- to pay your bills, pay your employees, and that kind of thing over the next nine months to operate," said Fleming. "Basically operating expenses are what we're trying to cover."
Fleming adds that it’s not known how long it will take to get money to businesses, but there’s a possibility it could be months because this is an unprecedented situation and Delaware is behind some other states.
The loan rate is 3.75% for small businesses and 2.75% for privately held non-profits for up to 30 years.
