To all our business clients,
SBA, a government agency, will be giving $50 billion in low interest loans to small businesses to help with the loss of revenue during the Coronavirus crisis. There are also rumors that this amount will be increased to $300 billion in the next few days.
Even though the terms are great for businesses that can get the loan, we find the process to be very slow and not all applicants will obtain a loan since there are 30.2 million small businesses in the US. Applicants should not expect fast results from the SBA.
Here is a summary of the program. If you have any questions, please send an email to jeff@djkcpa.com or michael@djkcpa.com and our team will be happy to assist answer questions or help with the application.
Program:
- Can use the funds to pay any operating expenses
- Up to 30 years terms (recommend to apply for 30 years, and might get less)
- Rates are 3.75% fix rate
- No prepayment penalties
- Up to $2Mi
- Minimum credit score of 660
- 1st payment not due for 12 months
Eligibility
- In business for 1 year minimum
- Need to be a “Small Business” as defined by the program
- Sole proprietor can apply
Process
- First step is to Apply online at https://www.sba.gov/funding-programs/disaster-assistance
- They won’t ask for most current financial statements, but might ask later in the process.