NASHVILLE, Tenn. — Both Tennessee Governor Bill Lee and Mississippi Governor Tate Reeves have made movies to help small businesses and nonprofits as many are forced to close or scale back due to COVID-19.
(TN NEWS RELEASE) - Today, Gov. Bill Lee announced he has submitted a request for Economic Injury Disaster Loan assistance to the U.S. Small Business Administration.
Once the declaration is made, all Tennessee small businesses and nonprofit organizations that have suffered economic injury as a result of COVID-19 will be eligible to apply for disaster loan assistance of up to $2 million per applicant.
“For most of my life, I’ve been a small business owner and understand the unique challenges each of you face,” Lee said. “While I am pleased with our progress on targeted relief for small businesses, we know this is just a first step from our federal partners to provide liquidity to our businesses. We are in constant dialogue with our delegation members to ensure that federal aid is responsive to our concerns and needs.”
The loans can be used to pay fixed debts, payroll, accounts payable or other bills that can’t be paid due to the disaster’s impact. Interest rates for the loans are 3.75% for small businesses and 2.75% for nonprofit organizations.
The SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
More than 94 percent of Tennessee’s private sector business establishments have fewer than 50 employees. This represents 151,500 businesses that employ over one million Tennesseans.
Employment has increased 13.6 percent at these establishments over the last five years, placing Tennessee in the nation’s top 10 states for small business growth.
“Small business is the backbone of Tennessee’s economy, and right now they have been faced with unprecedented challenges,” TNECD Commissioner Bob Rolfe said. “We will continue to provide the necessary resources, information and support to help our small businesses overcome these obstacles as quickly as possible.”
Additional information about Economic Injury Disaster Loan assistance, along with instructions on where to apply, will be announced once the declaration has been received.
Small businesses are encouraged to learn more about resources offered by the U.S. Small Business Administration at sba.gov.
Information about the SBA’s District Office in Tennessee can be found here.
Up-to-date information on COVID-19 in Tennessee can be found here.
-----------------------------------------
(MS NEWS RELEASE) - Governor Tate Reeves requested a disaster declaration by the U.S. Small Business Administration on Tuesday, March 17, 2020.
This request will provide low-interest, Economic Injury Disaster Loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19).
“Mississippians are resilient, but they shouldn’t have to weather this storm alone. Small businesses and their employees are the backbone of our state’s economy and deserve a helping hand during this trying time. We are working closely with the U.S. Small Business Administration to activate the Economic Injury Disaster Loan program so we can protect our small businesses and their communities,” said Governor Tate Reeves.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
Each county emergency management agency can provide copies of the SBA Economic Injury Disaster Loan. That paperwork will then be submitted to the Mississippi Emergency Management Agency to hand over to the Small Business Administration.
“Our county emergency management directors are working tirelessly with our small businesses across the state to ensure they suffer as little as possible during this pandemic. We urge small businesses to work quickly and efficiently to turn in their paperwork to our agency,” says MEMA Director Greg Michel.
That paperwork is to be submitted to MEMA State Coordinating Officer, Todd DeMuth at tdemuth@mema.ms.gov.