The state of Alabama has secured a critical declaration that will allow small businesses to receive assistance through the U.S. Small Business Administration’s Economic Injury Disaster Loan program to cope with the coronavirus outbreak.
The program will offer up to $2 million in assistance for an eligible small business, and they can be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid due to the impact of the COVID-19 coronavirus, which experts say is already having a significant effect on many small. In Jefferson County, a number of small businesses have been forced to close their doors and many others, such as restaurants, have had to significantly alter their business models.
The access to the SBA loans will complement other forms of federal, state and local assistance for affected businesses, such as the Birmingham Strong Fund launched by the city of Birmingham and partners.
“Small businesses represent the backbone of Alabama’s economy, and many of them need immediate help in these trying times,” Governor Kay Ivey said. “My team has worked closely with the SBA in recent days to make this economic assistance possible. We’re all grateful to President Trump and the SBA for responding rapidly to the problems faced by small businesses in Alabama.” Businesses must qualify for EIDL assistance. For more information, go to the SBA’s COVID-19 disaster assistance web page. The Alabama Department of Commerce worked with the Alabama Emergency Management Agency and the Alabama Small Business Development Center to prepare Alabama’s application for the SBA’s EIDL program. The SBA granted Alabama’s application today.
Greg Canfield, secretary of the Alabama Department of Commerce, said the department’s Office of Small Business Advocacy said many businesses are being squeezed by the sudden decline in economic activity brought on by the emergence of coronavirus. “Small businesses are the lifeblood of communities all across Alabama, employing local residents and sustaining economic vitality,” Secretary Canfield said. “It’s critical that small businesses around the state remain healthy, and the SBA’s disaster loan program could prove to be a lifeline for many of them.” According to data from the SBA, there are nearly 400,000 small businesses in Alabama, employing nearly half of all Alabama workers.
