SBA Loan Information

Jenn listened to a webnar today from the Virginia Small Business Administration about the SBA loans. Here are her take-a-ways. You can find more complete information and other resources here: virginiasbdc.org/covid

  • Max unsecured loan is $25,000

  • Max secured loan is 6 months of operating expenses up to $2M

  • Loans are 30 year loans, with no interest or payments for the first year, but interest starts accruing from the date of disbursement.

  • 3.75% fixed interest rate.

  • Types of collateral to secure the loan include: personal home, equipment, machinery, leasehold improvements.

  • Only small businesses with less than 100 employes and less than $50M in revenue are eligible.

  • There is no cost to apply and no obligation to take the loan.

  • You will need to upload your 2019 tax return or your end of year financials.

  • SBA phone number is 800-659-2955, and website is disasterloan.sba.gov/ela

  • From the time of your application it can take 21 days to get the decision. Then they mail your docs, you sign, and mail back, then a few days for disbursement.  So total of 30-45 days from time of app to time of disbursement.

  • The loan amount is based on operating costs so include payroll and other non-debt expenses in free form section.  The loan officer will work with you directly to determine the amount of your loan.

  • They don't know what the reporting for the use of loan will look like yet.

  • Don't know how funds are being prioritized re: SWAM, etc.

  • No minimum amount of time in business.

  • Not laying off employees is not a requirement.

  • Don't expect forgiveness of this loan.

  • Don't know about prepayment penalty.

  • You cannot apply through a commercial bank, you must go through the website.

The webinar will be listed on irginiasbdc.org/covid-19/  The webinars are the same but the questions will probably be different in each one so may want to skip to that point to see if your specific question is answered.  They are also trying to update the FAQ on this page from the questions in the webinar.

irginiasbdc.org/eidl/?fbclid=IwAR0At3xkVc9_Wi2JQKx8dClI1hgWVf1FCh1kj5YAwofF-VLV16pZNrmsNd4      

Gretchen Bedell