Loans are offered at very affordable terms, with a 3.75% interest rate for small businesses and 2.75% interest rate for nonprofit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. Every eligible small business and nonprofit is encouraged to apply to get the resources they need.
ELIGIBILITY
You must be a:
Small business, sole-proprietor, independent contractor (1099), a cooperative (including small agricultural), part of an Employee Ownership Stock Plan, agriculture or aquaculture business, or private non-profit.
Agricultural businesses include those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries.
TERMS, USES, & GETTING READY
- 3.75% for businesses (fixed) I 2.75% for nonprofits (fixed)
- 30 years
- No pre-payment penalty or fees
Uses: Working capital & normal operating expenses
Collateral:
- Required for loans over $25,000
- SBA uses a general security agreement (UCC) designating business assets as collateral, e.g. machinery and equipment, furniture and fixtures, etc.
There will be a credit check, as this is a loan program.
Please note this is a loan, and it has to be repaid. There are no mechanisms for the forgiveness of this loan. It is, however, a very strong program with great terms that can help many small businesses with cash flow issues during this time.