BOISE, Idaho — Update at 9:29 p.m. - The Small Business Administration is now offering low-interest federal disaster loans to some Idaho businesses. The original story follows:
From coast to coast and here in Idaho, the coronavirus outbreak has now served most small businesses with a large serving of uncertainty.
“COVID-19 is very unprecedented in that you have businesses from all 50 states trying to access this program at the same time,” Jerry Miller with Idaho Department of Commerce said.
That is why the State of Idaho has a request in with the U.S. Small Business Administration to receive an economic injury declaration, which would allow businesses in Idaho to become eligible to apply for loan assistance from SBA.
“This program that SBA offers was originally designed for local disasters, so a hurricane, tornado, an earthquake,” Miller said.
Both for-profit and non-profit businesses would be allowed to apply for a loan up to two million dollars at an interest rate of 3.75% for small businesses and 2.75% for non-profits, and the repayment period of the loan could be stretched out to 30-years.
Once Idaho receives that declaration businesses can apply for the loan on the SBA disaster website.
"Because this is a loan, this will have some of the common questions that you would be asked on a loan application, like revenue, they'll also look at credit history and many other things, however, because it is a disaster loan, the criteria will likely not be as strict as it is for a traditional bank loan," Miller explained.
If the small business loan application isn't approved, Miller recommends business owners also reach out to non-profit economic development organizations and lenders like Mofi and the Montana Idaho Community Development Corporation. He also urges folks to contact the Idaho Small Business Development Center and he added don't be afraid to reach out to local banks.
"I just encourage everyone to be very patient," he said. "This is an unprecedented event in our country so our partners at the federal government who are responsible for delivering these programs are overwhelmed right now."
It's unclear when the state of Idaho will receive that declaration.
but the department of commerce told KTVB they hope it will be soon.
they said once they find out they'll put it out on the commerce website, social media, and the state's official COVID-19 website.
However, farm or ranch operators do not qualify for that loan program but the Department of Commerce said their partners at the US Department of Agriculture have a similar program to help farmers and ranchers during this time.
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