Deadline near for SBA Utah earthquake loans

Utah businesses that suffered economic injury due to the local earthquake and aftershocks of March 18 to April 17, 2020, have until Oct. 1 to apply for an SBA federal disaster loan, according to a release from Tanya N. Garfield of the U.S. Small Business Administration’s Disaster Field Operations Center-West.

“This earthquake hit at a time when we were already scrambling from the onset of the COVID-19 pandemic and the switch to remote school and a work-from-home environment,” said Marla Trollan, SBA Utah District director. “Many individuals, businesses and nonprofit organizations suffered physical and economic damage. Total estimated damages in Utah amounted to between $70 million and $100 million. We want to remind businesses and nonprofits impacted by the earthquake and its aftershocks that they still have time to apply for SBA assistance.”

Private nonprofits that provide essential services of a governmental nature are eligible for assistance, Trollan said.

According to Garfield, eligible private nonprofits of any size may apply for SBA Economic Injury Disaster Loans of up to $2 million to help meet working capital needs caused by the disaster. “Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. Economic injury assistance is available regardless of whether the private nonprofit suffered any property damage,” Garfield said.

Economic Injury Disaster Loans carry an interest rate of 2.75 percent with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/.