SignaPay knows the hard-work small business owners put in to achieve their dreams. We are committed to supporting your businesses during this hardship.
Recently, the federal government has earmarked $350 million for small business assistance in the form of loans. The U.S. Small Business Administration (SBA) has many options for small businesses to apply for lending programs to help sustain their business during this period of slow economic activity. If the merchant meets the eligibility requirements for an SBA loan they will be matched with a lender who can provide the capital they need to continue operating their business.
Eligibility Requirements for SBA Loans:
- Be a for-profit business
- Do business in the United States
- Have invested equity
Other requirements may be required by the lending program offered. Additionally, businesses must meet size standards (view the list here), have the ability to repay, and a sound business purpose. Even businesses with bad credit may qualify for SBA loans.
The SBA has a COVID-19 Small Business Guidance and Loan Resources webpage at sba.gov where merchants can learn more about the resources available. Below are two programs that are the most relevant.
Economic Injury Disaster Loan Program
Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19). Economic Injury Disaster Loans provided through lenders partnered with the SBA give you immediate capital to pay for operating expenses related to your business in the event of an economic disaster. Click here to apply
SBA Express Bridge Loans
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with a SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan. This type of loan would be repaid in full or part from the EIDL loan.
Additionally, SBA offers a variety of other loans that give immediate access to capital that are outside of disaster relief loan programs. Speciality loans are available for businesses that deal in exports and government contracting. To learn more please visit sba.gov.