With more than 3,000 SBA lenders nationwide it can be difficult to find the right one. Figuring out how to apply for a loan and figuring out if you qualify for loan restructuring or forgiveness is time-consuming and stressful.

To help simplify the process, we've provided information for the top SBA lenders with links to their applications and phone numbers. You will also find a link to the Federal CARESAct to review sections of the stimulus package that can assist you.

There are three types of loans, in particular, we want to draw your attention to:
 

Paycheck Protection Program

To incentivize employers to maintain payroll during the crisis the SBA provided 100% federally-backed payroll protection loans for certain payroll expenses expended during the first half of 2020, with up to eight weeks of forgiveness for small businesses, certain nonprofits and self-employed individuals. The loans are forgivable if employers retained employees at comparable salary levels prior to the crisis. 

• If you are were business over the period from February 15 to June 30, you were eligible to receive a maximum loan amount that is 2.5 times your average monthly payroll expenses over that time period.
• If you were a seasonal worker over the period from March 1 to June 30, you were eligible to receive a maximum loan amount that is 2.5 times your average monthly payroll expenses for that shortened time period.
• If you were not in business after February 15—that is, if you were not open because of the crisis or you went out of business entirely—you were eligible to receive a maximum loan amount that is 2.5 times your average monthly payroll expenses for the two months of January and February.

At this time, many small businesses that took out PPP loans want to know if they qualify for loan forgiveness. The first thing to consider is if you can document that the funds received from your loan went to cover eligible payroll expenses, including:

• Compensation (salary, wages, commission, or similar compensation, cash tips, etc.)
• Payment for vacation, family, medical, and sick leave
• Allowances for employee dismissal or separation
• Payment for group health-care benefits, including insurance premiums
• Payment of employee retirement benefits Payment of state and local taxes imposed on the compensation of employees

Here is a useful link about the paycheck protection program:

PAYCHECK PROTECTION PROGRAM LOANS Frequently Asked Questions (FAQs) - @US Treasury 
View Article: https://home.treasury.gov/faqs
 

SBA 7(a)

This is another type of loan to consider. It is designed for businesses looking to acquire an existing business, buy-out a partner, expand to another location, purchase real estate or equipment, or those looking to combine any of these needs into one loan. Key terms include:

• Appropriate for longer-term financing for businesses with net worth below $15 million and an average net income below $5 million.
• Loan amount is up to $5,000,000.
• Terms are up to 25 years for commercial real estate and up to 10 years for all other purposes.
• Interest rates can be either fixed or variable.

If you want to apply, here is a link to the Section 7(a) Loan Application Checklist & Forms:
https://www.sba.gov/loans-grants/see-what-sba-offers/sba-loan-programs/general-small-business-loans-7a/7a-loan-application-checklist%20
 

SBA 504

A final loan to consider is a Section 504 loan. It is designed for businesses looking to expand through land or building acquisition, construction, or equipment purchase. Key terms include:

• Appropriate for longer-term financing for businesses with net worth below $15 million and an average net income below $5 million.
• Loan amount is up to $6,500,000. for the Wells Fargo portion and up to $5,000,000 for the portion funded by a Certified Development Company.
• Terms are up to 25 years for commercial real estate and up to 10 years for machinery or equipment.
• Interest rates can be either fixed or variable.

If you want to apply, here is the Section 504 Loan Application:
https://www.sba.gov/document/sba-form-1244-application-section-504-loan

Oftentimes, attorneys are needed to assist with these types of processes.

LawChamps is here to help.