Small Businesses and Nonprofits Organizations in CT and MA Eligible for SBA Loans up to $2 Million

The U.S. Small Business Administration (SBA) is offering low-interest Economic Injury Disaster Loans (EIDL) up to $2 million to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). These loans are to be used for working capital to help meet financial obligations and operating expenses, which could have been met, before the impact of the virus.  

Small businesses and private nonprofit organizations of any size are eligible EIDL loans. The interest rate is 3.75% for small businesses and 2.75% for private nonprofit organizations. 

Also, Massachusetts has announced a $10 million Small Business Recovery Loan Fund (SBRCLF). This fund will provide emergency capital up to $75,000 to state-based businesses and nonprofits with under 50 full-time and part-time employees that have been impacted by this virus. 

We are monitoring two other Covid-19 measures. The first is a Main Street Lending Program announced by the Federal Reserve that will support lending to eligible small and midsize businesses. The Federal Reserve has not issued any definitive guidance yet on this program. The second are potential new stimulus packages that are working there way through the United States Senate and the United States House of Representatives. Any stimulus legislation would need to pass each chamber and be signed by the President to become effective. We will be providing updates on the Federal Reserve program and any new stimulus legislation on our website.

Resource Links

SBA EIDL Application

Massachusetts SBRCLF Application

Economic Development Council of Western Massachusetts COVID-19 Resources

Contact your Whittlesey advisor for eligibility questions and to discuss if at this time, it makes sense for you to apply.

Disclaimer: Our content, comments, and answers to questions should not be construed as specific advice for your particular situation. The statutes and rules related to the SBA lending provisions and other programs are complex and you should consult with your financial and tax advisors for guidance regarding the application of the law to your particular facts and circumstances.