SBA loans and COVID
The SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020. This relief is not available for Paycheck Protection Program loans or Economic Injury Disaster loans. See link below.
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief
The SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020. This relief is not available for Paycheck Protection Program loans or Economic Injury Disaster loans. See link below.
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief
Disaster Assistance Loan Program: https://www.sba.gov/funding-programs/disaster-assistance
At first they were encouraging everyone to use the online application. Now they are asking to download (Also attached) the paperwork. Fill it out and upload it through their site.
Please note if they are a Sole Proprietorship; they use a different Form (C)
For additional information, please visit www.SBA.gov/disaster.
For questions, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail [email protected].
Encourage you to join a conference call that is delivered by an SBA Employee. You can get the listing here and sign up for free: https://www.sba.gov/offices/district/il/chicago
SomerCor, who is an SBA Lender. When you contact him, please mention GLM and Tom Gosche. You can contact him with questions not answered here, online or though the SBA. Manny Flores 312-360-3304 [email protected]
At first they were encouraging everyone to use the online application. Now they are asking to download (Also attached) the paperwork. Fill it out and upload it through their site.
Please note if they are a Sole Proprietorship; they use a different Form (C)
- SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
- Personal Credit Scores may be used. May just look at pay history since January 2019
- Requires collateral if over $25K•
- Must submit SBA Form 5, IRS Form 4506T, recent tax return, SBA Form
- 2202, SBA Form 413, SBA Form 1368, 2020 P&L
- 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.
- The idea is to show a before and after impact of Covid-19. Include the loan amount requested that you include a narrative and numbers to show justification of how your business was impacted.
- SBA has set a timeline of 21 days for decision on the loan, but could be up to 6 weeks.
- Reviewed in the order they are received.
For additional information, please visit www.SBA.gov/disaster.
For questions, please contact the SBA disaster assistance customer service center at 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail [email protected].
Encourage you to join a conference call that is delivered by an SBA Employee. You can get the listing here and sign up for free: https://www.sba.gov/offices/district/il/chicago
SomerCor, who is an SBA Lender. When you contact him, please mention GLM and Tom Gosche. You can contact him with questions not answered here, online or though the SBA. Manny Flores 312-360-3304 [email protected]
- Additionally, while not mentioned in the CARES Act, SomerCor encourages borrowers with current conventional loans to consider the SBA 504 refinance program to help their business. The refinance program provides a path for small businesses to lower their monthly mortgage payments and receive a cash-out portion to help cover a variety of expenses.
|
|
|
| ||||||||
