Lakeland, SBA offering ‘disaster assistance’ in response to virus

Loan program aims to aid small businesses, private nonprofits affected by COVID-19

Lakeland Community College, despite suspending in-person classes and events last week, remains proactive in reaching out to assist the Northeast Ohio community during the novel coronavirus pandemic.

The Ohio Small Business Development Center at Lakeland is now working to aid and counsel local small businesses and private nonprofits being directly and indirectly affected by COVID-19.

According to the school, the Small Business Development Center office has had an influx of calls from concerned business owners.

“People are calling us and they don’t know where to turn,” said Cathy Walsh, director of the Small Business Development Center at Lakeland. “We are strongly encouraging people with questions to call or email us to schedule a phone or email session sooner with us rather than later.

“The U.S. Small Business Administration has a new (Economic Injury Disaster) loan category that will be available for up to $2 million (in low-interest loans) for small business and private nonprofits,” Walsh added. “Unlike typical Small Business Administration loans that come directly from banks, this loan will come via the U.S treasury.”

According to administration, these loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the Outbreak’s impact. The interest rate is 3.75 percent for small businesses without credit available elsewhere. Businesses with credit available elsewhere are not eligible. The interest rate for nonprofits is 2.75 percent.

The Small Business Administration offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a caseby-case basis, based upon each borrower’s ability to repay.

Applications will be submitted directly to the Small Business Administration through SBA.gov/ disaster.

Walsh indicated the top two questions the office is receiving the most are how to apply for Economic Injury Disaster assistance and when.

The new Small Business Administration loan is now available. A sample application and instruction documents are available online at lakelandcc. edu/SBDC.

Meanwhile, U.S. Senators Sherrod Brown, DOhio, and Rob Portman, R-Ohio, on March 19 applauded Small Business Administration Administrator Jovita Carranza’s “swift approval” of the state’s application to qualify for the loan program.

The senators sent a letter to Carranza earlier this week urging assent of Ohio’s application.

“This is good news for Ohio’s small businesses and nonprofits,” the senators said in a joint statement.

“This quick approval is critical to ensure that our small businesses and nonprofits have the necessary economic support to overcome the significant challenges created by this public health crisis. This funding is designed to help them weather this storm and the resulting economic fallout.”

U.S. Rep. Dave Joyce, RBainbridge Township, also commended the approval of the program, adding small businesses are the lifeline of the Buckeye economy.

“As of 2018, over 99 percent of all Ohio businesses were small businesses and they employed 2.2 million Ohioans,” he said.

“The reality is that the COVID-19 outbreak is taking a big toll on these businesses, those who own them and the workers they employ. While we continue to ensure the health and safety of Ohioans during this unprecedented time, we must also protect our small businesses and ensure they have the support they need.”