How difficult is getting an SBA loan?

How difficult is getting an SBA loan?

Small Business Loans

Of course you can. Especially if you have an excellent credit history and are executing a good business plan, or if your business has been operating for some time with stable income, it is very likely that applying for financing with a bank is the best option. It is preferable to go first to a bank with which you already have a relationship. Or, ask your accountant or lawyer to help you contact a bank and present your proposal.

If your business is very new or does not yet produce substantial revenue, it may be difficult to obtain a traditional loan. Your best option is an alternative source of credit, such as a microfinance organization, where other factors such as a person’s character are taken into account.

A line of credit is a flexible loan tailored to the day-to-day cash flow needs of a business. Not every business qualifies for a line of credit – retail stores, for example, or those businesses that need to purchase inventory. The amount that can be borrowed is directly related to the amount of accounts receivable.

Sba.gov in English

Business owners should be aware that the SBA may modify some loan terms or requirements during the loan forgiveness application process. Please keep in mind that it is the borrowers’ responsibility to determine if you qualify.

Note: The amount of loan forgiveness depends on the percentage of loan proceeds spent on qualifying payroll and non-payroll costs. The total amount of loan forgiveness cannot contain more than 40% in non-payroll costs.

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With the Coronavirus Relief and Response Supplemental Appropriations Act signed into law on December 27, 2020, a Second Round of Payment Protection Program (PPP) loans was established, which are available to PPP borrowers who have exhausted their original PPP loans.

The maximum loan amount for a Second Round of PPP loans is $2 million, based on a loan of up to 2.5 times the amount of their average monthly payroll. However, entities in industries assigned to NAICS (North American Industry Classification System) code 72, including hotels and restaurants, may receive up to 3.5 times the amount of their average monthly payroll costs, with the same maximum level of up to $2 million.

Government Business Assistance 2021

Beyond what you may have heard, the SBA loan process has improved significantly over time and is very similar to the process for obtaining loans outside of the SBA. In addition, there were more than 58 thousand businesses that accessed an SBA loan in 2019, totaling more than $30 billion in SBA projects-another testament to the effectiveness of SBA loan programs.

BOK Financial is an SBA Preferred Lender, which means we handle loans in-house from start to finish, with no interaction with the SBA, thus providing a simple process for both you and the banker.

Our SBA experts are ready to discuss your business needs. Please take a few minutes to provide the requested information and one of our bankers will contact you.

New Business Loans

The first deferment was determined through Dec. 31, 2020, then extended through March 31, 2021, and now borrowers will be granted an additional 12 months of principal and interest payments, the SBA said in a March 12 press release.

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Borrowers have until March 31, 2022 to resume their regular payment schedule under the schedule immediately prior to that date, unless they voluntarily choose to hold deposits during the deferment period.

See moreThe @SBAgov extends disaster loans deferments until 2022. 1st pymt for C/Y20 EIDL is extended from 12 to 24-months from date of note. 1st pymt for C/Y21 EIDL extended from 12 to 18-months from date of note. [email protected] or 800-659-2955 / TTY: 1-800-877-8339- SBA Mid-Atlantic (@SBAmidatlantic) March 12, 2021