Pandemic-aid loans deadline ends today

The deadline for small businesses and farmers to apply for federal pandemic support through the Economic Injury Disaster Loan program has been extended for a year until Dec. 31, 2021.

The program, administered by the Small Business Administration, offers loans of up to $125,000 for businesses and nonprofit organizations suffering temporary revenue losses caused by the coronavirus.

Loan funds can be used for working capital and normal operating expenses, and carry interest rates of 3.75% for businesses and 2.75% for nonprofits. Payments can be deferred for one year, though interest does accrue over that time.

For loans over $25,000, the Small Business Administration uses a general security agreement designating business assets as collateral. The loans are not forgivable and can be paid out over 30 years. There is no penalty for prepayment.

Through the end of November, the agency has made more than 21,000 disaster loans in Arkansas valued at more than $1 billion.

The Federal Reserve on Tuesday delayed the termination of the Main Street Lending Program to Jan. 8, from today, in order to finish processing loans submitted by a Dec. 14 deadline, The Associated Press reported.

The Treasury Department in November ordered the Fed to close the Main Street program and some other emergency pandemic lending programs by today.

The program was designed to provide as much as $600 billion in credit to midsized U.S. companies damaged by covid-19.