One of the professionals in our network reached out to a great SBA loan originator and got some on the ground insight into the SBA disaster loans. It’s not surprising that things aren’t going smoothly as they ramp up a new program with huge demand and lots of questions. Here are some takeaways:
Disaster relief loans are a mess.
The online application process is overwhelmed. Savvy would-be borrowers are going on at 3 am and are prepared to be there for several hours. There isn’t a way to save your application and get back on later. Once you start, you need to finish or your work will be lost.
It’s a loan application. Have your financial statements, tax returns and proof of expenses like payroll and rent ready. Our advice from the firm – 3 years tax returns, 3 years profit and loss and balance sheets, copies of a recent payroll run, a rent invoice or even your entire lease are what we recommend.
Get ready to be patient.
No one currently has a handle on the timeline for approval.
No one has a sense of how important your current ability to repay might be. In other words, apply for the loan, even if it isn’t clear if you can qualify.
If you have existing loans, immediately ask for payment deferrals.
It’s not clear how repayment terms will be set.
Ask for what you need or a little more, but don’t overreach. What you request should be tailored to your demonstrable need.
We’ll update as often as possible.
Contact the franchise and business law attorneys at West Coast Franchise Law today at (206) 724-0846 to discuss your situation.