The deadline for small businesses to apply for a federal COVID loan comes December 31st.

UCDD Small Business Development Center Director Tyler Asher said the COVID Economic Injury Disaster Loan serves as a way to gain new gear at a low-interest rate.

“I’ve had some small businesses who took the loan and have set it back as working capital, but they’ve also taken the opportunity to buy some equipment they needed to upgrade or purchase with that, so it’s actually expended their business,” Asher said.

Asher said any business in operation prior to February 2019 qualifies. Asher said from the date the loan is disbursed, payments will not be required for the first two years. Then, the interest rate is 3.75 percent.

“You’ll get 24 months of zero payments to help boost your working capital and get you in a better position financially,” Asher said. “Then, you can start making payments on these loans. Of course, there is not pre-payment penalties on these.”

For more information to apply, call the Small Business Center at (931) 520-6081. The loan funding is provided by the U.S. Small Business Administration.