DES MOINES, Iowa — With 68 total confirmed cases in the state of Iowa, state officials are making moves to keep small businesses stable during the coronavirus pandemic.
Help from U.S. Small Business Administration
On the federal level, the U.S. Small Business Administration (SBA) issued a disaster declaration for the state of Iowa, according to the office of Gov. Kim Reynolds.
From January 31, 2020 and on, the declaration will allow pandemic-impacted small businesses to apply for low-interest support loans. Reynolds had submitted a federal funding request via the SBA's Economic Injury Disaster Loan program.
These loans will be available statewide to small businesses and private, non-profit organizations to east the economic injury caused by COVID-19. SBA's Economic Injury Disaster Loans offer up to $2 million in assistance to help overcome the temporary loss of revenue they are experiencing.
The governor's office says these loans may be used to pay fixed debts, payroll, accounts payable and other bills that can't be paid because of the disaster's impact.
The interest rate is 3.75 percent for small businesses and 2.25 percent for non-profits. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years.
Applications can be made on the SBA's website.
Help from the Iowa State Auditor
State Auditor Rob Sand announced that he will be expending public funds to "encourage the public to patronize local businesses in ways that comply with government orders."
It will meet the "public purpose" test during an audit based on the Iowa Code as a method to retain jobs.
An example of this would be printing flyers or using newspaper or radio adds to encourage the public to order take-out or delivery from local restaurants, according to Sand's office.
Sand's office says that the public should have advance notice, the public purpose should be recorded before expenditures are made, the communication shouldn't show favoritism, and conflicts of interest should be avoided.
