Category Archives: Security

FBI Warns On Zoom Conference Security

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Image: “Threatpost.com

FCW

As telework expands across the U.S., new users unfamiliar with security precautions can unintentionally expose their videoconferences to unauthorized participants.

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“The FBI is warning Zoom video-conferencing platform users to guard against “VTC hijacking” and “Zoom-bombing” by outsiders intent on making threats and offensive displays.

According to the FBI’s Boston Division, two Massachusetts high schools reported separate instances of individuals breaking into online classes in late March being conducted via Zoom teleconferencing software. In one incident, said the FBI, an unidentified individual dialed into a videoconference class, yelled out a profanity and the teacher’s home address. In the other, a school reported an unidentified individual with swastika tattoos dialing into a Zoom videoconference class.

FBI Special Agent Doug Domin told FCW that unauthorized participants are not just an issue on the Zoom platform. “Other providers have similar platforms,” he said, that are just as vulnerable to such intrusion if they’re misused.

“Organizations should have policies for VTC” and its associated software, as well as training on how to use it, said Domin. Individual session passwords should be used, even for audio bridges, he said. “The bigger the group, the bigger the possibilities” for unauthorized entry.

“We take the security of Zoom meetings seriously and we are deeply upset to hear about the incidents involving this type of attack,” a Zoom spokesman told FCW in an email. “For those hosting large, public group meetings, we strongly encourage hosts to review their settings and confirm that only the host can share their screen. For those hosting private meetings, password protections are on by default and we recommend that users keep those protections on to prevent uninvited users from joining,” they said.

The Zoom for Government platform is on the General Services Administration’s buying schedule and also has that agency’s Federal Risk and Authorization Management Program moderate level approval. Zoom was sponsored in the FedRAMP approval process by the Department of Homeland Security, according to the company. The authorization allows federal agencies and contractors to securely use Zoom for government video meetings and API integrations, according to the company.

Typically, government-approved versions of commercial off-the-shelf products to not allow for data collection for marketing purposes.

Zoom’s standard product has many newer users in public school environments, since company CEO Eric Yuan removed time limits on the app for elementary and high schools as the COVID-19 pandemic closed down the facilities across the U.S.

The company’s video teleconferencing offering has raised the hackles of some privacy experts, including Consumer Reports, who say it collects and sells user data to online advertisers. It revised its privacy policy on March 29 to say it does not sell personal data.

Additionally, a company official told the Intercept in a March 31 report that Zoom does not offer end-to-end encryption as it is commonly understood – that is encrypting data between user end points. The content of a video conference hosted by Zoom is potentially visible to the company itself.

An IT manager FCW spoke with about Zoom said they were confident that with the FedRAMP moderate rating that conforms services to FISMA standards, a federal Authority to Operate, and familiarity with the platform, most federal users could be reasonably confident with the platform’s integrity.”

https://fcw.com/articles/2020/03/31/zoom-bombers-fbi-rockwell.aspx

Bipartisan National Commission on Military, National, and Public Service

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“MILITARY TIMES”

A panel charged with evaluating the Selective Service System [has now recommended] requiring women to register future military drafts.

The bipartisan National Commission on Military, National, and Public Service — spent the last two years holding information sessions on the issue.”

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“They will include for the first time requiring women between the ages of 18 and 25 to register for potential conscription in the event of a prolonged war, as all young men are currently required to do.

Sgt. Nicole Turner, a motor transport heavy equipment mechanic, practices sighting in during Female Engagement Team training at Camp Lejeune, North Carolina on Oct. 10, 2018. A national commission is considering whether women should be required to register for the Selective Service System for a potential future military draft. (Lance Cpl. Tawanya Norwood/Marine Corps)
Women in the military draft, or dump the system altogether? New report looks at radical options

Big changes are expected to come to the Selective Service System in coming years, but exactly what is still unclear.Leo Shane III

The idea has gained traction among some women’s rights groups and complaints from some conservative activists in recent years. In the past, courts have ruled against adding women to the draft because certain combat posts were closed to them, but Pentagon officials in recent years have lifted nearly all those restrictions.

In a statement on Tuesday, House Armed Services Committee ranking member Rep. Mac Thornberry, R-Texas, praised the commission’s work and promised to closely consider the findings.

“Opening Selective Service to women is just one of their recommendations,” he said. “I look forward to examining the data and arguments the commission has compiled more closely.

“In the meantime, it is important that my colleagues have an opportunity to hear from the Commission directly. I believe that public hearings in the Armed Services Committee and other relevant committees are essential.”

When those public hearings might be held is unclear. Currently, nearly all congressional hearings have been postponed indefinitely because of the ongoing coronavirus pandemic. President Donald Trump earlier this month recommended keeping any public gatherings to fewer than 10 people in an attempt to slow the spread of the illness.

Legislative proposals have stalled out in Congress, over both concerns with traditional family roles for women and the viability of the Selective Service System itself. The system costs about $23 million a year to maintain.

Congress will have to adopt new legislation in order to make the change of adding women to the draft. Or they could opt to get rid of the Selective Service System altogether.

Recent legislative proposals regarding registration of women have stalled out in Congress, over both concerns with traditional family roles for women and the viability of the Selective Service System itself. The system costs about $23 million a year to maintain, and several studies have questioned how effective it would be if officials needed it to replenish troop levels.

That hasn’t happened in more than 40 years, and Pentagon officials have repeatedly said they prefer the current all-volunteer force to the idea of a mostly conscripted military.

Men between the ages of 18 and 25 who don’t register for the draft face possible fines and jail time, and may be ineligible for benefits like federal student loans. Advocates for adding women to the registration system have argued in the past that levying those penalties only on men is unfair.”

https://www.militarytimes.com/news/pentagon-congress/2020/03/24/panel-to-recommend-making-women-register-for-the-draft/

Labor Department Waives COVID-19 Contractor Affirmative Action Requirements

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FCW

The waiver applies to clauses in federal construction and service/supply contracts for COVID-19 relief which require contractors to hire and advance minorities, women and veterans.

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“The Labor Department’s compliance office has waived some contractor affirmative action requirements for three months as the COVID-19 pandemic presses companies and federal agencies to quickly meet demands.

The Labor Department’s Office of Federal Contract Compliance Programs (OFCCP) on March 17 temporarily waived some contractors’ affirmative action requirements under the three statutes it oversees.

The waiver will last until June 17, but it doesn’t put aside requirements for those contractors to enforce other federal, state and local civil rights laws, nor does it stop processing of discrimination complaints.

“Following President Trump’s direction, the Office of Federal Contract Compliance Programs is committed to swiftly responding to COVID-19,” said OFCCP Director Craig Leen, in the statement. “Today’s memorandum helps federal agencies and federal contractors engaged in relief efforts to protect the safety, security and health of the American people.”

“The waiver is not uncommon” in times of big crisis situations, Shirley Wilcher, executive director of the American Association for Access, Equity and Diversity, a Washington D.C.-based equal opportunity advocacy and training group, told FCW on March 23.

Similar contracting actions have been taken in the wake of other major disasters such as catastrophic hurricanes to help speed response, but they’re hardly welcomed with open arms, according to Wilcher. “Equal opportunity shouldn’t take a holiday.”

In 2005, the Labor Department’s Employment Standards Office issued a similar three-month waiver for contractor affirmative action rules to aid in Hurricane Katrina recovery.”

https://fcw.com/articles/2020/03/23/labor-dept-contract-requirements.aspx?oly_enc_id=

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“Adversarial Capital” Threatens Small Business Industrial Base

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Image: “Investors Business Daily”

FCW

“The Defense Department is concerned that foreign investment will take advantage of small businesses in the defense industrial base reeling from the COVID-19 pandemic.

The defense industrial base, which consists of more than 300,000 companies, is “vulnerable to adversarial capital,” and DOD wants them to “stay in business without losing their technology” or be subject to intellectual property theft.

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“Ellen Lord, DOD’s top acquisition executive: “The foreign investment issue is something that I have been tracking for the last couple years. There is no question that we have adversarial capital coming into our markets through nefarious means,” Lord said.

“So what we are doing, on the defense side, looking at [the Committee on Foreign Investment in the United States], on the offensive side, we’re looking at our Trusted Capital mechanisms.”

DOD has been conducting periodic Trusted Capital Marketplace virtual events to pre-empt CFIUS concerns and ensure companies’ access to “clean capital.”

Lord said the global outbreak of COVID-19 has created instability and uncertainty, especially for small businesses that aren’t sure if government contracts will continue.

“I think it presents a greater attack surface as there is greater uncertainty, especially to small businesses as to whether their contract will continue,” Lord said. “So we want to basically mitigate that uncertainty.”

DOD under the Trump administration has been pushing for more domestic manufacturing and reducing foreign investments, namely with drone production. It has also been adamant about finding U.S.-based solutions for telecommunications services and hardware production, barring the use of Huawei and ZTE products because those companies have ties to the Chinese government and military.

These moves, especially as the global health crisis persists, could have broader implications and shrink direct foreign investment up 15%, according to a United Nations report.

The Defense Department has also created a new task force to synchronize its COVID-19 efforts led by Stacy Cummings, the principal deputy assistant defense secretary and leader of the Acquisition Enablers office.

The Joint Acquisition Task Force will coordinate with military services and agencies’ acquisition resources and field requests from the Federal Emergency Management Agency, the Departments of Health and Human Services and  Homeland Security and other federal agencies for medical resources and personal protective equipment.

The task force aims to identify weak points in workforce and industrial capability and ultimately reduce companies’ reliance on foreign supply sources. It will also direct use of Defense Production Act authorities, which include being able to use economic incentives and priority-rate defense contracts to best serve the need of troops in the field and team with industry to boost commercial capabilities.”

https://fcw.com/articles/2020/03/25/defense-china-cfius-corona-lord.aspx?oly_enc_id=

Small Business Government Contracting and Federal Financial Recovery Resources

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Image: SBA/CDC

The COVID-19 battle will continue as a local issue.  It is at the local level in which federal funding programs are enacted, grown and made part of the culture.


Small businesses within states or territories may apply for a disaster assistance loan. There will be dramatic roles for small business, not just in medically related fields but also in logistics to geospatial technology fields and others.

https://www.smalltofeds.com/2020/04/small-business-government-contracting.html

Small Tech Companies Got $1 Billion At USAF Virtual South By Southwest

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DEFENSE NEWS

The U.S. Air Force lost its chance to hang out at South by Southwest this week after the new coronavirus known as COVID-19 caused the cancellation of the festival.But the service still awarded nearly $1 billion in contracts during a virtual version of its event held March 12.

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“[The event], included keynotes from Air Force Secretary Barbara Barrett, a “Pitch Bowl” where companies delivered short pitches in the hopes of receiving small contracts from the Air Force, and other events meant to deepen the Air Force’s connection to small commercial tech firms.

The largest contracts — worth more than $550 million total — went to 21 companies to develop “big bet” technologies. Those companies are Aerial Applications, Analytical Space, Anduril Industries, Applied Minds, Elroy Air, Enview, Edgybees, Essentium, Falkonry, ICON Technology, Orbital Insight, Orbital Sidekick, Pison, Privoro, Shift.org, Swarm Technologies, Tectus Corp., Virtualitics, Wickr, Wafer and one company that the Air Force has not disclosed.

“For all these awardees, you’re on a four-year, fixed-price contract that we believe, if successful, will disrupt part of our mission in a way that will give a huge advantage for our future airmen,” said Will Roper, the Air Force’s acquisition executive.

The value of the contracts awarded by AFWERX may seem small compared to the multibillion awards for major defense programs. However, these awards go a long way in helping technology firms overcome the “valley of death” between technology development and production, when a lot of companies are vulnerable to failure, said Chris Brose, head of strategy for Anduril Industries, which specializes in developing artificial intelligence technologies.

“For a company like ours or companies of that size, It’s quite significant. It allows us to really kind of do more of the good work that we’re doing, to scale and grow and work with new partners, and it makes a huge difference,” Brose said.

Brose declined to detail the precise nature of Anduril’s contract with the Air Force, but said that the general objective is to prove that an unmanned aerial system can deliver a mass of swarming drones capable of performing complex missions. While a human would still be “in the loop” overseeing the network, certain tasks — such as steering the drones, moving their sensors and processing gathered data — would be automated.”

https://www.defensenews.com/industry/2020/03/13/small-tech-companies-got-a-combined-1b-at-the-air-forces-virtual-version-of-south-by-southwest/

Pentagon Raises Contractor Progress Payment Threshold To Keep Cash Flowing

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Image: Levelset.com

WASHINGTON POST

The Pentagon, in a move to boost cash flow to large and small defense companies during the coronavirus crisis, will temporarily increase the percentages paid to contractors, known as periodic progress payments.


For small businesses the rate will go to 95% from 90% of incurred cost.”

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“Public interest groups called for the policy to be closely monitored.

The change comes as the U.S. Department of Defense was touched by a coronavirus fatality for the first time. A contractor who tested positive for the virus and worked at the Defense Security Cooperation Agency in Crystal City, Virginia, died on Saturday, the Pentagon said.

The Pentagon’s Director of Defense Pricing and Contracting issued a “Deviation on Progress Payments” memo late Friday that increases the rate for contracts to 90% of incurred costs from 80% for large businesses, Pentagon spokesman Air Force Lt. Col. Mike Andrews said in a statement on Sunday.

For small businesses the rate will go to 95% from 90%.

“This is an important avenue where industry cash flow can be improved,” Andrews said. The department also “is accelerating payments through several means to prime contracts, and directing prime contracts to expedite payments to subcontractors,” Andrews said.

In addition, the agency that manages contracts is working with the Pentagon’s accounting organization that makes the payments “to ensure that invoices are continuing to be paid in a timely manner,” Andrews said.

Blow-Back Possible

Pentagon acquisition head Ellen Lord on Friday issued guidance to industry that defense contractors are “expected to maintain their normal work schedules” — within recommended guidelines from the U.S. Centers for Disease Control and Prevention — amid the coronavirus outbreak because they’re considered “critical infrastructure.”

Byron Callan, a defense industry analyst for Capital Alpha Partners, said in an email that the new policy “will work if the large contractors assist smaller ones that are typically small and private. Think of the $50 million machining parts company that has 70% of sales for commercial aerospace and 30% of defense.”

The industry also risks negative blow-back if the increased payments are abused, he said. “If the large public companies use this change to accelerate share buybacks, I would expect management to be tarred and feathered,” he said.

“It’s important to help employers to keep paying people during this crisis, but the Pentagon needs to do more than just trust the better angels of these companies’ nature to prevail,” Mandy Smithberger, a director for the Project on Government Oversight, which monitors military spending, said in an email.

Taxpayer-Ripoff?

“They should require companies that receive these funds to commit that this money won’t go to dividends, salaries, and stock buybacks, but to the employees on the front lines who are most vulnerable.”

Shay Assad, the Pentagon’s long-time top official on pricing and contracts financing, said in an email the new effort reflects a fundamental misunderstanding of the regulations already in place that already provide for generous reimbursement rates. Assad retired in 2019.

“The fact is that cost of borrowing” from banks “is negligible” and doesn’t require additional Pentagon intervention, Assad said. “There is absolutely no reason to change the progress payment rates for large businesses. Large business is more than capable of using their own cash or borrowing at minimal interest rates. This is a taxpayer rip-off.”

Assad estimated that the top five defense contractors generated $93 billion in free cash flow between 2012 and 2017. “They bought $90.5 billion of their own stock during that same time frame,” he said. “There is no cash-flow intervention required.”

https://www.washingtonpost.com/business/on-small-business/pentagon-raises-contractor-payments-to-keep-cash-flowing/2020/03/22/f4ed6ee6-6c79-11ea-a156-0048b62cdb51_story.html


Returning Troops Denied Water, Bathrooms Under Quarantine

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(U.S. Army photo by Sgt. 1st Class Zach VanDyke via AP)

MILITARY TIMES

 “It wasn’t the welcome home that U.S. soldiers expected when they returned from war zones in the Middle East in the past week.

When their planes landed at Fort Bliss, Texas, they were herded into buses, denied water and the use of bathrooms, then quarantined in packed barracks, with little food or access to the outdoors.

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“This is no way to treat Soldiers returning from war,” one soldier told The Associated Press in an email.

The soldiers posted notes on social media about the poor conditions. Their complaints got quick attention from senior Army and Pentagon leaders. Now changes are under way at Fort Bliss and at Fort Bragg in North Carolina, where the first soldiers placed under quarantine also complained of poor, cramped conditions.

Quarantining troops on military bases is becoming a greater challenge for military officials. While continuing missions and training, they also have to try to prevent the spread of the highly contagious coronavirus by enforcing two-week quarantines of soldiers who have spent months overseas.

In one of Bragg’s remote training areas, large white tents have popped up over the past few days to house hundreds of 82nd Airborne Division troops returning to the base from Afghanistan and Middle East deployments. The tent city, being called Forward Operating Base Patriot (FOB Patriot), materialized almost overnight, after commanders realized the limits of the barracks when troops began arriving on Saturday.

Army Secretary Ryan McCarthy said senior leaders were looking into soldiers’ complaints and seeking answers from Fort Bliss. Pentagon chief spokesman Jonathan Hoffman told reporters that Defense Secretary Mark Esper had heard about the problems and “his response is, we can do better and we need to do better.”

Hoffman said the commander at Fort Bliss has met with all of the quarantined soldiers and “talked through some of their concerns. The spokesman added, “We are going to do better. This is something unusual for all these bases to be handling, and they are doing the best they can.”

In the early days of the quarantine, soldiers at Fort Bliss posted photos on social media showing foam food trays dotted with small piles of peas and rice. On Thursday, in an email statement, Fort Bliss described changes that have been made.

“The dining facility we initially used could not keep pace with demand,” said the statement. “The portions were inadequate, and led to our number one complaint. Fort Bliss leaders saw photos and immediately took action.”

One soldier, in an email to the AP, said when soldiers got off the plane from Afghanistan, they were loaded onto buses and did not get water or permission to use the bathroom for hours.

“We can’t walk down the hall, go outside, or exercise. We finally received drinking water at 0900 this morning,” said the soldier, describing Day Two. “The Army was not prepared, nor equipped to deal with this quarantine instruction and it has been implemented very poorly. ”

The AP is not identifying soldiers who described the conditions, in order to protect their identity so they could speak freely and not worry about potential reprisals.

Fort Bliss said that the food service plan has already increased to give troops three hot meals a day and that soldiers are now getting donated snacks and are allowed to order food and have it delivered to a central location. The troops are also allowed to go outside more and will get more access to gym equipment.

Another soldier at Bliss, who had been deployed to Kuwait, said in a message that the food has gotten better and troops are now allowed to go outside more. But as they begin Day Six there, packages have been held up and there has been no access to laundry facilities.

At Fort Bragg, some of the first soldiers to return on Saturday were sent to rooms in barracks that had been quickly emptied. Soldiers previously living in those rooms were moved to make room.

According to officials, soldiers are being separated into groups that returned from overseas together for the two-week quarantine. But realizing the need for more space, the 82nd Airborne decided on Saturday to build a new facility, and on Monday morning the first tent stakes were being pounded into the ground.

Because the area has been used for training in the past, workers were able to quickly bring in and hook up shower and toilet trailers and set up food tents and other facilities. By Thursday, several hundred troops had already moved in.

The 82nd Airborne’s 3rd Brigade has been deployed to Afghanistan, and is steadily returning home. Members of the 1st Brigade had gone to Kuwait and Iraq to help bolster security due to threats from Iranian-backed militias. Some members of that group have also come home.

According to Army Lt. Col. Mike Burns, a spokesman for the 82nd Airborne, FOB Patriot will be able to hold as many as 600 soldiers, but numbers have been changing as adjustments are made. He said Maj. Gen. James Mingus wanted to ensure that the returning troops knew “we were proud of what they accomplished and were doing everything we can to take care of them and stop the spread of the virus.”

Of the 1,700 82nd Airborne troops that have returned so far to Bragg, a bit less than half are housed in barracks and at FOB Patriot, and the rest are in quarantine in their homes. As of Friday about 200 were at FOB Patriot.

Anyone who exhibits symptoms of the virus will go into isolation and medical treatment.

For most people, the new coronavirus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia. The vast majority of people recover from the new virus. According to the World Health Organization, people with mild illness recover in about two weeks, while those with more severe illness may take three weeks to six weeks to recover.”

https://www.militarytimes.com/news/your-military/2020/03/20/military-works-to-improve-conditions-for-quarantined-troops/

Many Contractors Awaiting Pandemic Guidance From Government Agencies

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FCW

Lawmakers want federal agencies to publicly post their contingency plans so everyone has a better idea of what to expect as more federal employees move to telework and other alternative operations. Official agency advice is scarce.”

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“Some agencies posted some contractor-specific contingency guidance in the last few days ahead of the March 19 letter from Senate lawmakers, but federal contractors FCW has spoken with in the last few days said official agency advice for contractors is scarce.

The Environmental Protection Agency and the U.S. Agency for International Development rolled out guidance for their contractors at the end of last week, telling them to keep in close contact with their agency contracting officers, as well as check their contracts’ language for information on how to move ahead.

In a March 19 letter to the acting directors of OMB and OPM, Sen. Mark R. Warner (D-Va.) and seven other senators called on those agencies to require all federal agencies to post their contingency plans for COVID-19 outbreaks, so the public knows what services to expect and federal contractors have some guidance on how to comply with their contracts.

“Making these [contingency] plans transparent and readily available is key to ensuring that our constituents understand what services are continuing in the midst of the uncertainty and disruption caused by COVID-19. It is also important for federal employees and contractors to understand and properly implement the required mitigation measures and for policymakers to ensure compliance with these measures,” said the letter.

The letter said posting the plans was in line with the way the government handles the plans during a non-Coronavirus related government shutdown.

Contractor telework

The Professional Services Council urged Russell Vought, acting OMB director, to extend telework to the contractor workforce where possible.

Many contractors are being sent and home told that “telework is not authorized under the contract,” PSC President and CEO David Berteau wrote in a March 18 letter to Vought.

“Sending contractors home without authorizing telework effectively ends the important work being done for the government by those contractors,” Berteau wrote. He said the lack of guidance also undermines the intent of the President when OMB told federal agencies to allow government workers the “maximum telework flexibilities.”

Additionally, the National Defense Industrial Association, the U.S. Chamber of Congress, PSC and other trade groups are urging Congress to include contractor telework and assistance for contractors who can’t work because of closed federal facilities in coming pandemic relief legislation.

Excusable delays

EPA and USAID rolled out guidance for their contractors on March 13 and March 12 respectively, telling the businesses to keep in close contact with their agency contracting officers, as well as check their contracts’ language for information on how to move ahead.

USAID told contractors in its notice that contractors shouldn’t begin any new work or change work plans without getting written approvals from agency contracting officers and managers.

It told contractors not to begin any new work or change approved work plans.

The agency also said it is considering setting up an expedited procedures package for disease emergency response.

USAID contracting officers, said the agency, will get in touch with contractors if it needs to redirect resources. It said it said it would consider additional contract implementation expenses due to the virus on a “case-by-case basis.”

USAID advised contractors with workers infected by the virus and temporarily unable to work to “continue to incur operating costs–to be able to restart activities immediately if circumstances or instructions change.”

On March 13, the EPA posted a Coronavirus FAQ for small businesses that answered some basic questions about how they should proceed. The guidance advised contractors to review their contracts to see how, and if, those documents offer any latitude for delays. It advised small business contract holders to look to the Federal Acquisition Regulation for further information on how federal contract performance is handled under extreme circumstances, including pandemics. It warned that “force majeure” clauses common in the language of many commercial contracts, are not the same under the FAR.

Contractors that have “Excusable Delays” provisions in their contracts that cover contingencies including epidemics.

EPA advised contractors to consult with customer agencies closely on whether specific federal workers or sites would be available or open for work. It said contractors might also get wind-down and startup costs covered if work can’t be done because of absent workers or closed sites.”

https://fcw.com/articles/2020/03/19/contractors-guidance-coronavirus-rockwell.aspx?oly_enc_id=

Faster Qualification/Expanded Access – Disaster Assistance Loans For Small Businesses

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Once an economic injury declaration has been made in a state or territory, the new rules allow the affected small businesses within the state or territory to apply for a disaster assistance loan.

SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance for each affected small business.

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“NEWS RELEASE

PRESS OFFICE Release Date: March 17, 2020                      

Contact: Jennifer.Kelly@sba.gov, (202) 205-7036

Release Number: 20-26                    

Follow us on TwitterFacebookBlogs & Instagram

WASHINGTON – Today, as part of the Trump Administration’s aggressive, whole-of-government efforts to combat the Coronavirus outbreak (COVID-19) and minimize economic disruption to the nation’s 30 million small businesses, U.S. Small Business Administration Administrator Jovita Carranza issued revised criteria for states or territories seeking an economic injury declaration related to Coronavirus (COVID-19). The relaxed criteria will have two immediate impacts:

  • Faster, Easier Qualification Process for States Seeking SBA Disaster Assistance. Historically, the SBA has required that any state or territory impacted by disaster provide documentation certifying that at least five small businesses have suffered substantial economic injury as a result of a disaster, with at least one business located in each declared county/parish. Under the just-released, revised criteria, states or territories are only required to certify that at least five small businesses within the state/territory have suffered substantial economic injury, regardless of where those businesses are located.
  • Expanded, Statewide Access to SBA Disaster Assistance Loans for Small Businesses. SBA disaster assistance loans are typically only available to small businesses within counties identified as disaster areas by a Governor. Under the revised criteria issued today, disaster assistance loans will be available statewide following an economic injury declaration. This will apply to current and future disaster assistance declarations related to Coronavirus.

“We’re very encouraged that banks and financial institutions are responding to the President’s efforts to mobilize an unprecedented public-private response to the Coronavirus (COVID-19) outbreak. As a result, 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,” said Administrator Carranza. “To that end, the SBA is relaxing the criteria through which states or territories may formally request an economic injury declaration, effective immediately. Furthermore, once an economic injury declaration has been made in a state or territory, the new rules allow the affected small businesses within the state or territory to apply for a disaster assistance loan.” SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance for each affected small business. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

Process for Accessing SBA’s Coronavirus (COVID-19) Disaster Relief Lending

  • The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration.
  • Any such Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available statewide to small businesses and private, non-profit organizations to help alleviate economic injury caused by the Coronavirus (COVID-19).
  • SBA’s Office of Disaster Assistance will coordinate with the state’s or territory’s Governor to submit the request for Economic Injury Disaster Loan assistance.
  • Once a declaration is made, the information on the application process for Economic Injury Disaster Loan assistance will be made available to affected small businesses within the state.
  • 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% for small businesses. The interest rate for non-profits is 2.75%.
  • SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
  • SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible.

For additional information, please visit the SBA disaster assistance website at SBA.gov/Disaster.”