People are asking us how to apply for and obtain the new SBA Loans that will be available for businesses impacted by COVID-19.
The best way to apply right now is to ask your bank, or most major banks which already do SBA Section 7(a) loans. It looks like Bank of America, City National and Wells Fargo, as well as JPMorgan Chase and U.S. Bank, already make SBA loans and should be out in front on this. Further procedures are going to be announced as they are developed. Hopefully E-Loans or some online site will accelerate the application process for these loans.
The SBA money currently being authorized will be loaned by banks, guaranteed by the SBA. It will be an SBA 7(a) loan, though the requirements will be relaxed from previous terms. They are planning to make it possible for almost any FDIC-insured bank to make these COVID-19 SBA loans.
Businesses who apply for these loans will need to have been in business as of Feb 15, 2020 and prove that they paid employee salaries and payroll taxes, or independent contractors. Non profits are also eligible.
Hope this information is useful. Please keep those questions coming!
From The Lawyers You Trust,
Ellen Kaufman Wolf and your Wolf Wallenstein Team
Office: (310) 622-1000
Cell: (310) 883-8239