Missouri’s governor anticipates that the federal government will offer low-interest disaster recovery loans to Missouri small businesses impacted by COVID-19 disruptions.
Governor Mike Parson has directed the state Department of Economic Development (DED) and the State Emergency Management Agency (SEMA) to seek assistance for businesses through the U.S. Small Business Administration (SBA).
DED Director Rob Dixon tells Capitol reporters that the governor is requesting assistance through SBA’s economic injury disaster loan program.
“What that would do, we would allow small business loans, primarily for businesses that have a difficult time obtaining finance from a traditional lending source, to utilize this program to help them through these difficult times,” Dixon says.
Director Dixon expects a decision soon, on the governor’s request.
“For a for-profit business, it would allow for up to a $2 million loan and a 3.75 percent interest rate,” says Dixon. “For a non-profit organization, it would allow for up to a $2 million loan for a 2.75 percent interest rate.”
These would be 30-year low-interest loans, through SBA.
The governor is warning that thousands of Missourians will lose their jobs, due to coronavirus. Missouri’s bipartisan congressional delegation has written a letter supporting the governor’s SBA request. Every member in both parties signed the letter.
Parson and Dixon note Missouri businesses are worried about their long-term viability. The governor expects SBA to approve his request.
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