Request comes a day after Congresswoman Luria advises Governor Northam to submit the request
WASHINGTON, D.C. – Today, Governor Ralph Northam requested an Economic Disaster Loan Declaration for the Commonwealth of Virginia. This comes a day after Congresswoman Luria sent a letter to the Governor urging him to submit this request. An Economic Disaster Loan Declaration would ensure impacted small businesses are eligible to receive emergency resources now available from the Coronavirus Preparedness and Response Supplemental Appropriations Act signed into law earlier this month.
“Small businesses are the bedrock of our Coastal Virginia economy, and we must act quickly and decisively to help them during this public health crisis,” said Congresswoman Luria. “I am pleased that the Governor is taking advantage of federal government resources by asking the Small Business Administration to issue an Economic Injury Disaster Loan declaration.”
On March 6, the President signed the Coronavirus Preparedness and Response Supplemental Appropriations Act into law. This bill contains emergency funding to research and develop vaccines and treatments for COVID-19. It also established an Economic Injury Disaster Loan program to assist small businesses with the economic fallout caused by the COVID-19 pandemic.
The Economic Injury Disaster Loan program provides low-interest loans of up to $2 million to small businesses devastated by the aftereffects of a disaster such as the COVID-19 pandemic. To qualify, businesses must not have access to other sources of credit. This program is administered by the Small Business Administration and is activated by a request from the state or territory’s governor.