March 17, 2020
As we enter the second week of the unprecedented COVID-19 global pandemic, we are just beginning to feel the economic impact that “social distancing” will have on our communities. Our small businesses are the heartbeat of Main Street, America, and are a formidable economic engine, but they also are the most susceptible to economic distress and market fluctuations.
The Federal Reserve has taken bold action to slash the federal funds rate to 0% and to launch a massive $700 billion quantitative easing program to help shelter the economy from the effects of the virus. However, many small businesses may find themselves unable to qualify for such loans.
For this reason, the Small Business Administration (SBA) has designated COVID-19 as a qualifying event for Economic Injury Disaster Loans (EIDL) for businesses and private non-profits in affected communities.
Small businesses, small agricultural cooperatives, and some private nonprofit organizations that have suffered substantial economic injury due to COVID-19 may be eligible for an EIDL of up to $2 million, which will provide the necessary working capital to help businesses survive until normal operations resume after a disaster.
EIDL assistance will be available to small businesses only when the SBA determines they are unable to obtain credit elsewhere.
The State of Texas is asking for your help as community leaders to spread the word about the Economic Injury Disaster Loan Program. I thank you in advance for sharing this valuable program to your small business members.
Please click here for access to the application process and relevant worksheets. If you have any questions or concerns, you can reach me at my Capitol office at (512) 463-0694 or our Frisco district office at (214) 494-6498.
