SBA Disaster Loan Forgiveness Programs Updates ?
If your tiny business has been affected by a devastating natural disaster and you’re looking for disaster relief, you might be eligible for SBA disaster loans. These low-priced loans help struggling businesses get right back to work and restore their credit rating. In some cases, the Small Business Administration disaster loan is an alternative to an initial federal loan. In other cases, the SBA disaster loan is simply a supplement to that federal loan. No matter your situation, a small business loan is a great option to help get your business back on its feet.
A few things to know about SBA disaster loans: They don’t require a credit check. You can be approved for this funding even if your credit is inadequate or non-existent. You don’t need to submit a business plan. Your only requirement for receiving funds is that you’ll need to demonstrate that your proposed uses for the funds will bring you at least six to twelve-monthly revenues. To do this, you’ll need to submit your income and expenses statements to the lender to prove that you can repay the loan. Lenders also don’t perform a credit check when they approve these loans.
Also, SBA disaster loans don’t require collateral. That means you won’t have to worry about putting your home up for the loan. The SBA doesn’t even consider a personal guarantee for these loans. This means you won’t have to worry about losing your home if you can’t repay the money you’ve received from SBA disaster loans.
These loans also offer low fixed interest rates. The repayment schedule is based on your business’ profit and expenses. Because there’s no obligation to repay, the interest rate on the loan is often relatively low. As long as you make your payments on time, the SBA will report your success in meeting loan obligations each month to help improve your credit.
To get one of the SBA disaster loans available through the small business administration, your business will have to have at least one year of continuous sales. Your loan application can be considered, even if your business is not experiencing a profit, as long as you can show that your sales are steady. This makes these loans perfect for small businesses that have recently expanded, as well as those that have experienced a loss in revenue as a result of an economic or natural catastrophe.
Although a small percentage of these loans result in profits for lenders, the remainder of them is considered unsecured, making them ideal for businesses that aren’t nearly as profitable. While unsecured loans do come with a higher interest rate, the payment terms on these loans are usually much more flexible than those of secured loans.
Typically, it can take anywhere from two weeks to six months for a lender to process your loan request, which means that you will have plenty of time to repay the loan. If you need to make extra payments before the loan has been fully repaid, your lender may allow you to extend the repayment period, which will enable you to pay more down the road as your loan balance decreases.
You also have the option of paying off the loan early, which will reduce the overall amount of interest you pay on loan. Once you repay the SBA disaster loan as scheduled and on time, you’ll receive a refund of all fees and interest charges on your loan, which means you will never have to pay interest again on your SBA loan.