FAQs 1 RE: Coronavirus Funding from FED
How much is the SBA lending to businesses? $1Trillion dollars will be loaned to the 7 million businesses being impacted by the Corona virus.
How much can a business borrower? Loans will range from $200,000 up to $10 million dollars. The loan size may be lowered in coming weeks to accommodate smaller businesses, needing less capital. This will cover your business expenses for the next two years.
Who will qualify? The majority of businesses that have properly packaged loan files that have had positive cash flow prior to February 2020.
How fast will closing take from time of submission? The SBA is looking to disperse funds after initial underwriting within or under 10 days. The government understands the importance of getting this capital on the street quickly, and efficiently, to avoid as many businesses going under as possible.
What are the rate and terms? The Bill has yet to pass, but these will be the lowest interest rate business loans in history from 0-3% 30 years.
When will these loans be available? As soon as Legislation passes the bill, these loans are made available immediately.
How much can I borrow? $200,000 up to $10,000,000 based on your past years of expense. Our quick formula is average the last two years of expense then multiply by 2. This will cover your business expenses for the next two years.
Why use a broker when I can apply right at the Federal site? Unfortunately, most of the businesses that apply will not qualify due to improper packaging. These will be very complicated loan files to compile. With our 20 years experience we get it done right. We’ve also recognized the applications on the Federal website are incomplete for actual SBA approvals. By the time an SBA lender contacts you requesting the complete package, there will be tens of thousands of applicants in front of your request. The complete application is a minimum 15 pages long (More likely to be added) and requires a list of additional documents. No one is going to help you with your application or documentations directly at the SBA Website. Unfortunately, the longer it takes you to complete the application, the further down the line you will fall in receiving the funding you need. We are a loan packaging company. Our job is to hold your hand and to make sure everything is DONE RIGHT the first time to make sure you are at the front of the line to receive your emergency relief funding.
How do I qualify? You will need to have a cash flowing business prior to Feb 15, 2020. Credit, cash flow, and normal loan parameters will be relaxed due to the sever impact Corona virus has had on the economy.