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SBA Disaster Loans

President Joe Biden has announced plans for a massive economic stimulus package worth roughly $1.9 trillion to help strengthen the stability of the economy.

Now Available:

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Borrow up to $2 Million for payroll and expenses.

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We'll prepare all the paperwork for you.

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Get your closing documents in as little as 2 weeks.

Solvency

Solvency is a company’s ability to meet its long-term debts and financial obligations. This is essential to staying in business, as it demonstrates a company’s ability to continue its operations into the foreseeable future.

Due to the extraordinary nature of recent events, the United States government has resorted to drastic measures, some of which haven’t been seen since the financial crisis of 2008. President Trump has announced plans for a massive economic stimulus package worth roughly $1.9 trillion.  

Apply Now for the Relief You Need to Remain Solvent

SBA Disaster Loan

Rates & Terms

The disaster loans extended by the SBA can be used to pay back fixed debts, payroll, accounts payable, and other bills that your business cannot pay because of the unforeseen financial impact your company may have suffered as a result of the coronavirus. The interest rates for these SBA disaster loans are very competitive.

Longer Repayment Terms

One of the major benefits of the SBA Disaster Loan is a longer repayment term. Qualified borrowers can receive a repayment term of up to 30 years. 

Non-Profits

2.75%

Interest

Small Business

3.75%

Interest

Loan Amounts Up To

$2M

For Qualified Borrowers

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COVID-19 Disaster Loans

The global threat and rapid spread of the coronavirus has severely disrupted the American economy as well as other national economies across the global. Businesses both large and small are making significant, sometimes unprecedented, adjustments, such as requiring their entire workforces to stay home and work remotely. On the darker side of things, some of the most vulnerable business sectors are already initiating layoffs as the financial crisis leaves them unable to pay their employees.

Due to the extraordinary nature of recent events, the United States government has resorted to drastic measures, some of which haven’t been seen since the financial crisis of 2008. President Trump has passed two massive economic stimulus packages worth over $2 trillion with a third stimulus package worth roughly $1.9 trillion being recently passed by President Biden. These packages haves many components, with some funds designated for industries most affected — like airlines — as well as $250 to $350 billion in relief for small businesses. In line with this, the U.S. Small Business Administration announced it is now offering designated states and territories low-interest federal disaster loans for working capital to small businesses that have sustained substantial economic injury as a result of the coronavirus’s financial impact. Read on to find out how to get an SBA disaster loan for your business.

Coronavirus SBA Disaster Loan Rates and Terms

The disaster loans extended by the SBA can be used to pay back fixed debts, payroll, accounts payable, and other bills that your business cannot pay because of the unforeseen financial impact your company may have suffered as a result of the coronavirus. The interest rates for these SBA disaster loans are very competitive:

  • 3.75% APR for small businesses
  • 2.75% APR for non-profits

One of the top benefits of SBA loans is that they come with long-term repayments to keep payments affordable, with terms of up to a maximum of 30 years. Terms are determined on a case-by-case basis, depending on each borrower’s ability to repay. SBA’s Economic Injury Disaster Loans are only one aspect of the federal government’s wider, coordinated response, and the SBA will continue to provide support and effective responses throughout the duration of this disaster.

How to Get an SBA Disaster Loan Due to the Coronavirus Impact

As provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act, recently signed by President Donald Trump, the SBA has issued Economic Injury Disaster Loan declaration to extend loans to small businesses facing distress across the country. The SBA Administrator Jovita Carranza stated that her agency is working directly with state governors to provide targeted, low-interest disaster recovery loans. The SBA is continuing to assist small businesses with counseling and navigating their preparedness plans.

In order to apply for an SBA disaster loan, you can go to the SBA’s Disaster Loan Assistance page and either log in or register your business. Since the coronavirus disaster loan declaration was made, the SBA site has been experiencing very high volumes of traffic, so visiting the website during non-peak hours (7 p.m. to 7 a.m.) is best.

The SBA disaster loan application is a three-step process. First, you’ll apply for the loan online or by mail (preferably not in-person at a disaster center). Second, the SBA reviews your credit, a verifier will estimate the total damage, and a loan officer will work with you to discuss loan recommendations and next steps. Third, the SBA will prepare your Loan Closing Documents, which, once you sign, will lead to an initial disbursement of money within five days followed by a case manager who will schedule future disbursements until you receive the full loan amount.

These SBA economic disaster loans can offer up to $2 million in assistance to small businesses and can provide crucial economic support to help surmount the temporary loss of revenue they are experiencing. Here’s some more information about SBA disaster loans:

  • Businesses of any size can borrow up to $2 million for physical damage.
  • Small businesses, small agricultural cooperatives, small businesses engaged in aquaculture or private non-profit organization can borrow up to $2 million for economic injury.
  • Small businesses may apply for a maximum business loan of $2 million for both physical damage and economic injury.

One important point to note is that SBA disaster loans were typically aimed at businesses whose operations were damaged by natural disasters, hence the emphasis on physical damage. With the coronavirus, the SBA will likely shift the emphasis to economic injury since the coronavirus isn’t destroying buildings or property.

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