The U.S. Small Business Administration on Thursday approved an economic injury disaster loan for Arizona requested by Gov. Doug Ducey earlier this week, opening the door for businesses to receive up to $2 million in financial assistance to help them cope with the coronavirus pandemic.
The governor sent the letter on Tuesday to the agency that provides loans and lines of credit to small businesses and Ducey is not the first governor to do so.
Colorado Gov. Jared Polis also requested similar federal funding yesterday. Nevada is one of the first states to start receiving funds, and Gov. Tom Wolf of Pennsylvania has requested funds for his state as it deals with the coronavirus, which causes the COVID-19 illness.
“As we continue to address COVID-19 and prioritize public health, we are working with our federal partners to mitigate the economic impact on Arizona’s small businesses and employees,” Ducey said in a press release.
The loans can be used for debts, payroll, accounts payable and other bills that otherwise couldn’t be paid due to the coronavirus. The interest rate on the loans is 3.75% for small businesses without credit and 2.75% for non-profits.
Businesses still have to apply to get the loans, and are able to qualify for up to $2 million each. The application can be found on the SBA’s website.
President Donald Trump and U.S. Sen. Marco Rubio have already requested $50 billion in loans from the agency, a sharp increase over the $30 billion it gave out last fiscal year, according to CNBC.