As a business owner, there are many funding options available to you. For example, U.S. Small Business Administration (SBA) loans have long been popular among both new and established businesses.
In today’s day and age, with many companies reeling from the economic impact of the coronavirus, SBA loans are getting more attention than ever before.
As you come to better understand your current financial circumstances and future goals, it’s critical to consider every type of funding that’s available to you. Here are some options provided by the SBA.
SBA Express Bridge Loans
Do you currently have a relationship with an SBA Express Lender? If so, you’re in position to access up to $25,000 without delay. This may be just what you need to hold you over until things clear up and you’re able to return to your former level of revenue.
Here’s what the SBA has to say about using an express bridge loan:
These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan.
SBA Debt Relief
The SBA has stepped in to provide financial assistance to small businesses during the COVID-19 pandemic.
As part of its comprehensive strategy to help companies during this difficult time, the SBA will pay up to six months of principal, interest, and associated fees that borrowers owe on microloans, 504 loans, and 7(a) loans.
Note: Economic Injury Disaster loans and Paycheck Protection Program loans are not eligible.
As a borrower, you’re not required to apply for assistance. Instead, it’s automatically provided under the following terms and conditions:
- For any loan not on deferment, the SBA will start making payments on the next due date
- For a loan on deferment, the SBA will start making payments the first month after the deferment period ends
- For any loan made after March 27, 2020 and disbursed by September 27, 2020, the SBA will start making payments with the first one that’s due
Don’t Give Up – Turn to the SBA
No one wanted to be affected by the COVID-19 pandemic, but you have to deal with it accordingly.
If your company is under financial strain at this time, don’t give up. Learn more about your many options, such as an SBA Express Bridge Loan or SBA Debt Relief program.
And of course, you can always apply for a more traditional SBA loan. It doesn’t have to be a loan or program tied to the pandemic.
If you’re interested in learning more about SBA loans and related products and services, contact the administration direct or reach out to a qualified lender.