News

Disaster loans now available through SBA

Q&A with Rich Johnson

published in The Oklahoman | March 26, 2020

On March 20,2020, the U.S. Small Business Administration approved an Economic Disaster Loan Declaration for all 77 counties in Oklahoma, paving the way for small businesses and private nonprofits negatively impacted by the COIVD-19 pandemic to apply for an SBA disaster loan.

In a business Q&A in The Oklahoman, McAfee & Taft business and tax lawyer Rich Johnson and banker Cameron Brewer reviewed who is eligible for a low-interest disaster loan, how qualified organizations should apply, and what they can expect in terms of rates and loan amounts.

“The interest rate is 3.75% for small businesses and 2.75% for private nonprofits,” said Johnson.  “The repayment term will be determined on a case-by-case basis and can be up to a maximum of 30 years. In most cases one-half of the prior year’s gross profit, up to $500,000, will be available to help your business overcome the temporary loss of revenue. If more than $500,000 is needed, certain businesses may qualify for up to $2,000,000 in assistance.”