During this time of economic distress, we are aware small businesses are struggling and will struggle in the weeks ahead. Extraco Banks would like to provide information on ways your business can obtain financial assistance for relief outside of Extraco.
The U.S. Small Business Administration is offering low-interest federal disaster loans to small businesses and non-profits suffering substantial economic injury as a result of the Coronavirus (COVID-19). If you have been directly affected by the pandemic and are not currently seeking assistance elsewhere, you may be eligible.
To begin your application, please click here.
Please note that Extraco Banks is not designated to originate these applications; federal disaster loans are direct from the US Small Business Administration.
Additional information regarding SBA's Coronavirus (COVID-19) Disaster Relief Lending:
- These loans may be used to pay fixed debts, payroll, accounts payable, and other bills that can't be paid because of the disaster's impact.
- The interest rate is 3.75% for small businesses and 2.75% for non-profits.
- 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.
- It is highly recommended that borrowers consider applying for an SBA disaster loan immediately.
- Credit will be reviewed, and repayment ability is based on pre-disaster conditions.
In addition to the SBA Disaster Relief Loan, there is a second $300 billion dollar program debated in Congress on March 23rd, which will provide additional options to help businesses keep their employee base intact and out of unemployment lines.
For additional questions or assistance, please visit the SBA website or contact your local Small Business Development Center. As always, feel free to contact your Commercial Relationship Manager at Extraco for any other needs you have during this time.