Many business owners are frustrated with the current process of the SBA disaster loan online. There are a few differences between the current SBA disaster loan being offered and the slightly modified 7(a) process that the SBA already uses.
One of the differences is that federally insured banks would become involved in handling paperwork so the SBA website isn't overwhelmed. And the second difference is the new program has a new payment forgiveness plan for up to 8 weeks.
Here is a comparison of the current and future SBA-backed loans:
Current SBA LOAN
- INTEREST RATE: 2.75% NON-PROFITS, 3.75% FOR-PROFITS
- UP TO $2 MILLION IN ASSISTANCE (UP TO $500,000 FOR FIRST 6 MONTHS)
- 30-YEAR TERM
- ONE YEAR OF DEFERRED PAYMENTS
NEW 7(a) LOAN
- INTEREST RATE: 4% FOR BOTH NON AND FOR-PROFIT
- UP TO $10 MILLION IN ASSISTANCE
- 10-YEAR TERM
- 6 MONTHS OF DEFERRED PAYMENTS
- POSSIBLE FORGIVENESS PLAN FOR FIRST 8 WEEKS
Many business owners will have questions between the two and ask which one is the more optimal loan to get for them and their business.
If you're confused do make sure to contact us today!