Once approved by U.S. Small Business Administration, state companies will be able to access low-interest loans to cover losses
MADISON, WI. March 17, 2020 – WEDC and Wisconsin Emergency Management (WEM) officials are working with the Wisconsin office of the Small Business Administration to unlock federal Economic Impact Disaster Loans for businesses impacted by the COVID-19 outbreak.
“We know the outbreak of COVID-19 is causing considerable uncertainty for businesses not only in Wisconsin but throughout the world,” said Governor Tony Evers. “Our application for federal disaster loans is just the first step to address the needs of Wisconsin businesses and their employees during the emergency.”
WEDC Secretary and CEO Missy Hughes added, “WEDC is in regular communication with businesses of every size and type across the state as they face this emergency. We are committed to ensuring that businesses get the assistance they need so they can weather this difficult period.”
“SBA’s Wisconsin office is actively working with small businesses, WEDC and state emergency management officials to gather the information needed to support the governor’s request,” said Eric Ness, Wisconsin’s SBA district director. “In the meantime, SBA’s network of partners statewide—SCORE, the Small Business Development Centers, Women’s Business Centers and the Veterans Business Outreach Center—is prepared to advise businesses on steps to take to protect themselves in this unprecedented situation. Once the Economic Injury Disaster Loans are approved for Wisconsin by SBA Administrator Jovita Carranza, these same partners and SBA’s offices can assist small businesses with completing and submitting their loan applications.”
The federal SBA is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). SBA’s Economic Injury Disaster Loans offer up to $2 million per business in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
As in the case of past emergencies, state and local officials must provide evidence of losses to the federal SBA in order to qualify for the program. Because Wisconsin is seeking to unlock the loans on a statewide basis, it must provide evidence of losses in each county.
WEDC officials anticipate they will first finish compiling data on these losses; the state will then submit its application to the SBA, which has promised to expedite the approval process.
For more information on the SBA loans, please visit https://www.sba.gov/coronavirus, sign up for updates at www.sba.gov/updates and follow SBA Wisconsin on Twitter at @SBA_Wisconsin. For more information about WEDC’s support for Wisconsin businesses, please visit wedc.org.