MONTGOMERY â Governor Kay Ivey announced today that small businesses across Alabama negatively impacted by the coronavirus pandemic are eligible for assistance under the U.S. Small Business Administrationâs Economic Injury Disaster Loan (EIDL) program.
The program will help qualified businesses and non-profit organizations recover from economic losses tied to the abrupt downturn triggered by the COVID-19 disease.
âSmall businesses represent the backbone of Alabamaâs economy, and many of them need immediate help in these trying times,â Governor Ivey said. âMy team has worked closely with the SBA in recent days to make this economic assistance possible. Weâre all grateful to President Trump and the SBA for responding rapidly to the problems faced by small businesses in Alabama.â
SBAâs Economic Injury Disaster Loans offer up to $2 million in assistance for an eligible small business. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
These low-interest loans may be used to pay fixed debts, payroll, accounts payable and other bills that canât be paid because of the disasterâs impact.
Businesses must qualify for EIDL assistance. For more information, go to the SBAâs COVID-19 disaster assistance web page.
Greg Canfield, secretary of the Alabama Department of Commerce, said the departmentâs Office of Small Business Advocacy has heard from many small business owners around the state who are being squeezed by the sudden decline in economic activity brought on by the emergence of coronavirus.
âSmall businesses are the lifeblood of communities all across Alabama, employing local residents and sustaining economic vitality,â Secretary Canfield said. âItâs critical that small businesses around the state remain healthy, and the SBAâs disaster loan program could prove to be a lifeline for many of them.â
Commerce worked with the Alabama Emergency Management Agency and the Alabama Small Business Development Center to prepare Alabamaâs application for the SBAâs EIDL program. The SBA granted Alabamaâs application today.
âThis was a team effort that will help many small business owners in Alabama make it through this crisis and move forward to thrive once again,â Governor Ivey said.
According to data from the SBAâs Office of Advocacy, there are nearly 400,000 small businesses in Alabama, employing nearly half of all Alabama workers.