How SBA Loans Are Helping Businesses During Difficult Times

In these unprecedented times, all facets of life have taken a hit. Since many businesses are forced to stay closed due to COVID-19 related government mandates, small business owners are wondering how they will be able to make ends meet or even keep from closing their doors for good. As a result, many are seeking assistance in the form of a U.S. Small Business Administration (SBA) Loan. Keep reading to learn more about how an SBA Loan may be a saving grace for your small business.

 Types of SBA Loans

Wallis Bank offers a wide variety of SBA loans to our loyal customers. Each program offers different benefits, so it’s important to do your research and make sure you are applying for one that can help you the most.

 7(a) Program:

• This program provides both short-term and long-term working capital, as well as assistance with purchasing equipment, supplies, and real estate. It also provides funds to construct a new building, establish a new business or expand an existing business, and refinance existing business debt under certain conditions. Terms vary according to the use of proceeds. The maximum loan amount is $5 million.

CDC/504 Program

• This loan program offers commercial real estate financing for owner-occupied properties. The structure of the loan requires a 10% down payment from the borrower, 40% CDC loan, and the remaining 50% bank loan. The loan offers both short-term and long-term financial assistance for the purchase of land, land improvements, and the construction and renovation of facilities.

Current Events Related Loans

Economic Injury Disaster Loan (EIDL) Program

• The EIDL program has a maximum loan amount of $150,000, to be used for fixed debts, such as rent, utilities, payroll, accounts payable, and other applicable bills. Small businesses, private non-profits, and agricultural businesses apply for this loan directly through the SBA.

Paycheck Protection Program (PPP)

• The PPP has a maximum loan amount of $10 million, all or part of which may be forgivable. These funds are solely for payroll expenses, rent, mortgage interest, and utilities. There is an automatic payment deferral until forgiveness is processed. This program closed on August 8, 2020.

Are SBA Loan Payments Flexible?

The SBA is offering added flexibility for repayment terms due to the economic turmoil and unpredictable nature of the global pandemic. This allows you to focus on your business and employees until things can return to normal.

Wallis Works with You

As an SBA Preferred Lender, Wallis Bank treats your small business as though it’s our own. If you are looking for assistance with applying for SBA loans or simply want to learn more about resources for your small businesses, please do not hesitate to contact us.