The federal government has relaxed criteria for states and territories to
obtain disaster assistance loans for small businesses as part of an initiative
to combat coronavirus disease 2019 (COVID-19), according to an announcement.

The U.S. Small Business Administration revised the criteria to make
qualification for assistance faster and easier for states and territories and
to provide statewide access to disaster assistance funding.

Here's how SBA says the criteria has changed:

--States or territories only need to certify that at least five small
businesses within their borders have suffered "substantial" economic injury.
Before, they would have to document that at least five small businesses were
significantly harmed in each county or parish declared a disaster.

--Disaster assistance loans will be available statewide after an economic
injury declaration. This will apply to current and future disaster declarations
related to COVID-19. Before, SBA disaster assistance loans were typically only
available to small enterprises within counties identified as disaster areas by
a governor.

SBA Administrator Jovita Carranza said banks and financial institutions are
responding to President Donald Trump's initiatives to combat the coronavirus
outbreak.

"Most small businesses that need credit during these uncertain times will be
able to obtain it. However, our goal is to ensure that credit is available to
any and all small businesses that need credit but are unable to access it on
reasonable terms through traditional lending channels," Carranza said.

--Reporting by Donna Harris, dharris@opisnet.com; editing by Barbara Chuck,
bchuck@opisnet.com


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