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SBA: Business Loans & Banks

Small Business Administration
Small Business Administration
With more than 3,000 SBA lenders nationwide it can be difficult to find the right one. It's time-consuming and stressful.

To help simplify the process, we've provided information for the top SBA lenders with links to their applications and phone numbers. You will also find a link to the Federal CARESAct to review sections of the stimulus package that can assist you.

There are two types of loans, in particular, we want to draw your attention to:


Paycheck Protection Program

To incentivize employers to maintain payroll during the crisis the SBA is providing 100 percent federally-backed loans for certain payroll expenses through June 30, with up to eight weeks of forgiveness for small businesses, certain nonprofits and self-employed individuals. The loans are forgivable if employers retain employees at comparable salary levels prior to the crisis. The PPP also waives all SBA fees and provides deferral on loan repayments for a minimum of six months up to a maximum of one year.

Small businesses impacted by coronavirus-related issues between February 15 and June 30, 2020 may apply for loans, which will remain available through the end of June. All 501(c)(3) nonprofits, 501(c)(19) veterans organizations, tribal businesses with fewer than 500 employees, individuals who manage a sole proprietorship, and independent contractors are eligible. Each entity is limited to one loan, determined by the applicable taxpayer identification number (TIN).

The loans are categorized by how long the organization remains operable from the beginning of the crisis period (February 15) to June 30. For businesses that continue to operate and retain employees over that period, the SBA can provide a maximum loan of 250 percent of the average monthly payroll costs during that period:

  • If you are in business over the period from February 15 to June 30, you will receive a maximum loan amount that is 2.5 times your average monthly payroll expenses over that time period.
  • If you are a seasonal worker over the period from March 1 to June 30, you will receive a maximum loan amount that is 2.5 times your average monthly payroll expenses for that shortened time period.
  • If you were not in business after February 15—that is, if you were not open because of the crisis or you went out of business entirely—you will receive a maximum loan amount that is 2.5 times your average monthly payroll expenses for the two months of January and February.

Businesses that took out economic injury disaster (EID) loans between February 15 and June 30 may refinance their original loan into a PPP loan and add any outstanding loan payments to their payroll expenses.

Eligible payroll expenses for calculating PPP loan amounts include:

  • Compensation (salary, wages, commission, or similar compensation, cash tips, etc.)
  • Payment for vacation, family, medical, and sick leave
  • Allowance for employee dismissal or separation
  • Payment for group health-care benefits, including insurance premiums
  • Payment of employee retirement benefits
  • Payment of state and local taxes imposed on the compensation of employees


PAYCHECK PROTECTION PROGRAM LOANS Frequently Asked Questions (FAQs)
- @US Treasury - As of April 7, 2020

View Article: https://home.treasury.gov/faqs

 

SBA 7(a)
  • Designed for businesses looking to acquire an existing business, buy-out a partner, expand to another location, purchase real estate or equipment, or those looking to combine any of these needs into one loan.
  • Appropriate for longer-term financing for businesses with net worth below $15 million and an average net income below $5 million.
  • Loan amount is up to $5,000,000.
  • Terms are up to 25 years for commercial real estate and up to 10 years for all other purposes.
  • Interest rates can be either fixed or variable.
SBA 504
  • Designed for businesses looking to expand through land or building acquisition, construction, or equipment purchase
  • Appropriate for longer-term financing for businesses with net worth below $15 million and an average net income below $5 million.
  • Loan amount is up to $6,500,000. for the Wells Fargo portion and up to $5,000,000 for the portion funded by a Certified Development Company.
  • Terms are up to 25 years for commercial real estate and up to 10 years for machinery or equipment.
  • Interest rates can be either fixed or variable.
Section 504 Loan Application: https://www.sba.gov/document/sba-form-1244-application-section-504-loan

Oftentimes, attorneys are needed to assist with these types of processes.
Court Buddy is here to help.

FAQs 

Can I Get a Small Business Loan?
Yes, if your business has less than 500 employees, you are eligible to apply under the CARES Act for loans of up to $10 million with a 1% interest rate and loan forgiveness.
What Type of Loan Does the CARES Act Provide?
The CARES Act is designed to give payroll and benefit protection loans. You can apply for a loan designed to cover your payroll and benefits obligations, and related costs and expenses, for a period of 2-3 months.
How Do I Apply?
Talk to the banker with whom you hold your business bank accounts. Most banks are authorized CARES Act lenders. It’s important to find a banker who will advocate and work with you, and who is responsive, during the applications process.
Here you can find sample letters to request Small Business Relief:
Small Business Administration Loans and How to Apply
Small Business Assistance: Lender Banks

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