Economic injury disaster loans for small businesses

The U.S. Small Business Administration is now offering federal assistance to all CNMI businesses and nonprofit organizations, who have been severely impacted by the COVID-19 outbreak and the loss of tourists coming into the CNMI.

“In accordance with my recent request to [SBA], I’m pleased to inform all of you that SBA is now offering low-interest federal disaster loans for small businesses and non-profit organizations of any size, including agricultural cooperatives and aquaculture enterprises, here in the CNMI,” said Gov. Ralph DLG Torres. “We strongly encourage all impacted businesses and organizations to apply for these economic injury disaster loans.”

Businesses may qualify for Economic Injury Disaster Loans of up to $2 million to mitigate the economic loss of our tourism industry as a result of COVID-19.

“I want to thank President Donald J. Trump, SBA administrator Jovita Carranza, and our private sector leaders—the Saipan Chamber of Commerce, Northern Marianas Business Alliance, and the Hotel Association of the Northern Mariana Islands—for working with me and for sharing this opportunity with the business community. This is a collaborative effort to protect our businesses and their employees, because they are a vital part of our economy,” Torres added.

The Economic Injury Disaster Loan program may apply to “small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the COVID-19.”

The 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. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing.

The Economic Injury Disaster Loan offers an interest rate of 3.75% for small businesses and an interest rate of 2.75% for non-profit organizations.

To apply online, receive additional disaster assistance information, and download applications, visit http://disasterloan.sba.gov/ela.

All applications must be completed and mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155 no later than Dec. 21, 2020.

For more information on the SBA disaster assistance, contact the SBA’s Customer Service Center, call (800) 659-2955 or email disastercustomerservice@sba.gov. Individuals who are deaf of hard of hearing may call (800) 877-8339.

Available SBA resources and services can be found on their website: SBA.gov/coronavirus. (PR)