Many businesses are currently seeking SBA disaster loan assistance. The SBA Disaster Loan program for COVID-19 is administered and serviced directly by the SBA (unlike other SBA loan programs) through an online portal here. Currently the SBA Disaster Loan Assistance Portal is down for maintenance through at least close of business today, 3/25.
The SBA has issued a fact sheet on the assistance program available here (but this is also down for maintenance currently).
Certain local SBA offices are also providing additional resources. For those in the Chicago area, the local SBA office is providing webinars through eventbrite. Check out currently scheduled events here. These do appear to quickly fill up and as I write this only a bilingual program on Friday, 3/27 still has openings. All the webinars are of course free.
This does not mean that other SBA loans are not still available and those existing programs may be a good option to consider for some companies. For example, if you own and occupy your company's real estate and have a non-SBA mortgage on the property currently, you might want to look into an SBA 504 refinance option for your current mortgage. The 504 loan can also be a good option for businesses with large pieces of machinery and equipment or looking to buy or replace such equipment. The current rate for a 504 refi is 2.8% fixed for 20 years.
The most common SBA program, the 7a loan, also remains an option for up to $5 million and small loans can have rates as low as prime plus 2.75%. Borrowers will be required to provide a personal guaranty at least half of the loan.
SBA 504 and 7a loans are administered and serviced through private lenders and many banks have SBA programs. One such lender is Somercor and their website and newsletter offers a wealth of resources. Please contact me if you would like a direct into to an SBA lender for a 504 or 7a loan, or check out the SBA portal when it reopens hopefully this evening.
NOT LEGAL ADVICE
Please be advised that we have provided the information contained here as a courtesy and while we have sought to be as current and accurate as possible we do not represent the accuracy of anything contained here. Nothing contained here should be considered legal advice.