Have you received an SBA Economic Injury Disaster Loan (EIDL) to support you through the coronavirus economic downturn? If so, you have additional options to help rebuild your business.
Low-cost SBA 7(a) loans can provide the working capital or debt refinance you need during this time. SBA loans are considered the “gold standard” in small business lending because they have the lowest rates, low monthly payments, and long 10-year terms with no prepayment penalties.
Here’s what you need to know about having an EIDL , how it impacts an SBA 7(a) loan application, and information about low-cost SBA 7(a) loans.
Yes. You can get a traditional SBA 7(a) loan in addition to an EIDL loan.
When you apply for an SBA 7(a), the amount of your EIDL loan payment will need to be included in your debt schedule and cashflow statement you submit with your application.
A debt schedule outlines all financial debts you’re responsible for. This document tells a lender where the debt came from, how much is left to repay, what rate you pay on that debt, and the collateral backing those instruments.
A cash flow statement lists the cash funds that move in and out of a company’s accounts. For more information on cash flow, review: How to Calculate Small Business Cash Flow.
SBA loans from banks in the SmartBiz network are available from $30,000 – $350,000 for working capital or debt refinance.
Funds from an SBA 7(a) loan can be used for debt refinancing and working capital. Working capital includes operational expenses, marketing, hiring, etc. SBA loans can be used to fund new equipment purchases as well.
SBA loans can also be used for refinancing existing business debt not secured by real estate (such as cash advances, business loans, and equipment leases).
SmartBiz's advanced software streamlines the SBA loan application process so small businesses can now apply online and get funds in as fast as 7 days. SmartBiz Relationship Managers are on hand to answer any questions and guide you through the application process.
You can apply for an SBA 7(a) loan through a traditional bank. If you work with SmartBiz Loans, they have a network of trusted bank partners who fund these loans. We’ll match you with the lender most likely to approve. You won’t waste time going from bank to bank.
Yes. We have helped many small businesses obtain an SBA loan offered from a bank in the SmartBiz network even after they have been turned down by other banks.
Businesses that qualify for an SBA loan offered from banks in the SmartBiz network typically have more than $100,000 in annual revenue. Most of our customers are profitable and cash flow positive. All are able to show that they can afford to make our monthly loan payments.
SmartBiz is dedicated to providing business owners with the information and support they need to weather the economic crisis. The SmartBiz Small Business Blog has the following resources and more to help you get back up and running.