Businesses hit hard by the economic crisis are able to apply for small business disaster loans.
Most Small Business Administration disaster loans are for things like hurricanes or floods. Sometimes they’re for damage sustained in events like 9/11 or an earthquake. Now the crisis is in the balance sheet for many small businesses across Virginia.
Carol Chastang at the Small Business Administration says businesses can get up to $2 million by showing how much money they are losing this year compared to last year.
“Businesses can look at receipts: What they were bringing in, how they were able to pay their employees, how they were able to cover their operating expenses," she says. "And then what happened from January 1st to March 30th of this year. Clearly there will be a difference.”
That’s especially true in certain sectors of the economy. Jeanette Chapman at George Mason University says the economic damage of social distancing is harmful for many small businesses in Virginia.
“So if people can’t go out and spend money, retailers, restauranteurs, personal care services will all have very large decreases in revenues,” Chapman explains.
The disaster loan program began back in 1953, when applications were submitted on paper. These days, businesses that need money to help them stay afloat can apply online, and SBA officials are already hearing from businesses across Virginia.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
