Tag: SBA loans

$100 Billion in SBA Loans and Grants Still Available | Small Business Trends

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With less than three weeks remaining in 2021, you still have the opportunity to get a piece of the $100 billion left in Small Business Administration (SBA) loans and grants. December 31 is the last day applications will be accepted for the COVID-19 Economic Injury Disaster Loan (EIDL) and Targeted EIDL Advance. And the Supplemental Targeted Advance applications must be turned in no later than December 10, 2021.

$100 Billion in SBA Loans and Grants STILL Available for Small Business

One of the benefits of applying for government loans is the great rates. As a small business with less than 500 employees, you can apply for an EIDL loan of up to $2 million. The loan comes with a 3.75% interest rate if you are a for-profit company. And if you are a not-for-profit organization, the rate goes down to 2.75%. What makes it even more attractive is, these are 30-year loans.

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The SBA Does Not Loan Money | Peter Mehit

~ knjohn ~ 1 Comment

The SBA Does Not Loan Money

 Q. Should I get a loan from the SBA?

A. You can’t get a loan from the SBA, but you can get a SBA loan guarantee.

Come again?

Well, first off, the SBA does not loan money, so you can’t get a loan from the SBA.  Only banks loan money.  The SBA writes guarantees to limit the losses a bank will experience if your loan goes bad.  This is important to know, because it means you will have to qualify under the bank’s rules.

These can be very different from the SBA’s.  For example, it is not a requirement for you to collateralize the full loan amount to get an SBA guarantee.  Under SBA rules if you run out of assets, but have pledged what you have available, you can be approved.  Right now, we know of no bank that will make a loan without collateral equal to our greater than the amount you’re borrowing.

Each bank’s rules are slightly different, with the large banks having the most restrictive and the local and regional banks being the most liberal.

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