There is no small business in the US that has
not suffered due to the COVID-19 pandemic.
SBA (Small business
administration) of the US is trying its best to provide disaster loans easily
available to affected areas. In this article, we are going to discuss how you
can Apply for these SBA disaster loans,
how to qualify, and how to get you to loan forgiven by SBA by default.
General
information about SBA Disaster loan Program
This program is specially designed to serve
those small business owners who are affected by COVID-19 in the US. All small
business owners and contractors are eligible to apply for these loans.
According to the SBA disaster loan program you can borrow up to 2 million dollars to
fund your business. This SBA disaster loan program is also available for other
natural disasters like earthquakes and floods.
SBA is encouraging all small business owners
to apply for these loans who are effected by COVID-19 in 2020. The annual
interest rate of SBA disaster loans is 3.75% for small businesses and only
2.75% for NGOs or non-profit organizations.
It is a long term loan that generally provides
you a time span of 15 to 30 years. That’s why it is more affordable to small
businesses.
Spend
SBA Disaster loan wisely
The main reason behind these SBA disaster
loans and their low-interest rate are that you can keep your business running.
During this critical time of the Corona Virus pandemic, it will help you to
cover payroll, pay rent, and mortgage. So, once you get approved for the SBA disaster loan it is up to you that
how you use it to fill up revenue gaps.
How you
can qualify for the SBA disaster loan
To qualify for SBA disaster loan of Economic
Injury Disaster Loan (EIDL) by proving that your business has suffered due to
COVID-19 Pandemic. This way you dont have to obtain loans from private lenders.
Here are some guidelines that you guys can
follow to get yourself qualified for SBA
disaster loans.
●
Proof of COVID-19 pandemic
affecting your business.
●
If you are a personal contractor
●
Documented Proof that you own the
business
●
Paid tax documents
●
Personal information.
You can apply for this SBA disaster loan from
all territories of the US soil. You can also apply through different online SBA
approved lenders like Bitxfunding.
These online SBA lenders will help you approve your SBA disaster loan fast. Bitxfunding has a vast resume of
satisfied borrowers.
Apply
for SBA Disaster loan
To apply for SBA disaster loan directly you
have to use SBA disaster loan Assistance Portal. In your initial application,
you will submit no form. You can also apply for EIDL online for up to 10,000
Dollars.
Once you are done with the application a loan
officer will check your previous history and credit score. They will also check
your income statement and tax returns for the last 2 years. This will give them
an idea that how much your business needs that loan.
If you will require loan under 200,000 dollars
you have the option of offering collateral but a lender cannot request it. For
a loan over 200,000, you are required to post personal collateral. If you have
worthy collateral the SBA won’t be able to deny you a loan.
Get SBA
disaster loan Forgiven
Due to the presence of a Corona virus pandemic,
you have more chances to get your SBA
disaster loan forgiven by the government. There are a few key points that
you guys have to understand if you want to get your loan forgiven.
- If your
business is shut down or dissolved due to COVID-19, you can apply for loan
forgiveness. If your business is running the chances of loan forgiveness
become minimum.
- You have to
make sure that can’t help you pay back your loan.
- SBA will
help you to pay off your 50 to 75% debt of your bank.
- The
remaining amount will be paid off by you.
- You can try
to demand a middle way to pay off the remaining amount by SBA. it is up to
SBA that they accept your offer or not.
So, here is all the information that you need
to acquire an SBA disaster loan and get it forgiven as well.
Comments
Post a Comment