City of AustinFOR IMMEDIATE RELEASE
City of Austin proposing additional financial resources for impacted businesses
Texas is one of the most recent states to receive a federal disaster declaration for COVID-19 following local and county officials’ efforts.
Small businesses, private non-profits, homeowners, and renters experiencing financial losses due to COVID-19 can now apply for emergency financial assistance through the U.S. Small Business Administration (SBA) Disaster Assistance Loans.
“In anticipation of our City’s measured steps to contain the spread of COVID-19, our staff worked closely with county and state administrators, as well as our elected officials, to secure this resource for our community,” said City Manager Spencer Cronk. “We are excited that local small businesses and non-profits have another source of relief from the economic impacts of this pandemic, and we are continuing to evaluate other sources of support to respond to the needs of our local businesses and their employees.”
The SBA Disaster Assistance Loan Program provides loans up to $2 million for small businesses and private non-profits, at rates of 3.75% (for-profit) and 2.75% (non-profit) for terms up to 30 years on a case-by-case basis. The loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact.
Information about program eligibility and online applications are available on SBA’s website: disasterloan.sba.gov.
On March 26, the Austin City Council will consider additional support for local businesses by creating a local Economic Injury Disaster Loan Program. The loan program, which is designed to work as a gap financing in conjunction with an applicant’s request for federal assistance, would provide working capital loans up to $35,000 for Austin businesses that can demonstrate an economic injury associated with the COVID-19 global pandemic. The application process for the Economic Injury Disaster Loan Program would be similar to the SBA Disaster Assistance Loans.
“We recognize that for many local Austin businesses, the economic impact began with the cancellation of South by Southwest,” said Veronica Briseño, Director of City of Austin Economic Development Department. “Our intent for the proposed Economic Injury Disaster Loan Program is to address the economic impact to local businesses and provide support to retain employees until a recovery can begin.”
Visit the City of Austin's COVID-19 Community Resources for more information on resources available for local businesses and their employees.
Stay current on the latest COVID-19 updates for Austin online at www.austintexas.gov/COVID19
To learn more about helpful resources, visit www.austintexas.gov/edd and follow @econvitalityatx on Twitter