Small Business Administration (SBA) will provide small businesses with loans of up to $2,000,000. Loans can be used to pay fixed debt or other payables/payroll that cannot be paid due to the Coronavirus impact on business. Think of it as working capital loans for business injury – “Keeps the Business in Business.”
- Must show the ability to repay
- Built in 4-month deferment of payments
- Low interest rates
- Up to 30-year terms
- Collateral not required for up to $25,000 Loans
- SBA will attempt to process each application in 2-3 weeks.
- Apply at https://disasterloan.sba.gov/ela
Mitch McConnell said that certain Emergency SBA Loans that cover basic business expenses (rent/mortgage/utilities/etc) will not need to be paid back. While this sounds great, this is NOT law and we urge to NOT rely on as if it will be law.
Current SBA loans in place may receive six-month deferment of payments (certain to restrictions). We urge you to consult your lender.