During the COVID-19 pandemic, the Small Business Administration (SBA) has provided a lifeline for small businesses that have been battling to survive. Through a number of programs, including scholarships and loans for small businesses, the organization has been offering financial support. However, many business owners are unsure if they may still apply for SBA loans and grants while the pandemic is still going on.
The SBA is still lending to small businesses, which is fantastic news. Through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) programs, the government has been disbursing loans. Many small businesses have benefited from these programs in helping them survive these challenging times.
The PPP is a lending program created to give small businesses the money they need to keep paying their staff. If the borrower utilizes the money for approved costs like rent, salary, and utilities, the loan is entirely forgiven. If you haven’t yet applied, the PPP program has been reopened by the SBA for new borrowers and second draw loans.
Another loan program that offers financial support to small businesses hit by disasters is the EIDL program. To assist firms in paying their running expenditures, the program provides low-interest loans of up to $2 million. The EIDL program has also been reopened by the SBA to new applicants, and the loans are still accessible.
The SBA also provides grants to small businesses in addition to loans. Small businesses affected by the pandemic can get up to $10,000 in quick help under the agency’s COVID-19 EIDL Advance. The award can be used for any business-related expense and does not need to be repaid.
Although the SBA continues to offer financial support to small businesses, obtaining a loan or grant may not be simple. These programs are in great demand, but funding is scarce. The application procedure may therefore be competitive, and not all applicants may be accepted.
In conclusion, entrepreneurs can still seek for financial aid from the SBA, which continues to award grants and loans to small businesses. But not all candidates may be accepted because the process might be competitive. It is important to look into the SBA’s loan and grant programs if you are a small business owner in need of money.
Depending on the lender, the type of loan, and the financial requirements of the company, the usual small business loan amount can change. However, the Small Business Administration (SBA) reports that in 2020, the typical loan amount under its well-known 7(a) lending program was $420,000.
Depending on the lender and the type of loan you are asking for, different credit scores may be needed for SBA loans. Although some lenders may consider customers with credit scores as low as 620, SBA lenders typically prefer borrowers with credit scores of 680 or above. It’s crucial to remember that even if your credit score meets the requirements, other aspects, such as the financial history of your company and your own financial status, will be considered when deciding your eligibility for an SBA loan.