SBA / COVID 19 update

Uncategorized Mar 26, 2020

Since congress just passed the new stimulus package, I recommend you begin getting your ducks in a row ASAP. There are relief loans for businesses through the SBA and they are ready to lend. You must be ready for the process. It isn’t for the faint of heart, but there are funds available and sometimes, if regular lending won’t work for you, the SBA can be a savior.

For those who want to apply for SBA disaster relief loans, all states and territories are now disaster zones, and you can apply Here

If your business has been around for at least two years and you were cash-flow positive last year, it’s likely you will get relief faster by applying for a regular SBA loan through a bank.

 If you get your financial information together now, you will be able to get into the program faster, which means cash in hand faster.

Steps to prepare for SBA funding

The SBA process can be lengthy, and you will need to be prepared. You will need the following:

  1. Three years of personal and business tax returns. Personal tax returns are for any individual who owns 20% or more of the company.
  2. Try to get your 2019 tax returns done as soon as possible. But if they are not close the lender is going to need your 2019 year end financials
  3. A personal financial statement for any owner who owns more than 20% of the company. A link to download can be found here  https://www.sba.gov/document/sba-form-413-personal-financial-statement-7a504-loans-surety-bonds
  4. A debt schedule for your business. A link can be found here https://www.sba.gov/sites/default/files/tools_sbf_sba202.pdf

Good luck and as always, I am here to help. 

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