{"id":16861,"date":"2021-11-16T22:49:42","date_gmt":"2021-11-16T17:19:42","guid":{"rendered":"https:\/\/www.seminarsonly.com\/news\/?p=16861"},"modified":"2021-11-16T22:52:56","modified_gmt":"2021-11-16T17:22:56","slug":"sba-disaster-loan-assistance-how-do-i-use-the-7a-loan","status":"publish","type":"post","link":"https:\/\/seminarsonly.com\/news\/sba-disaster-loan-assistance-how-do-i-use-the-7a-loan\/","title":{"rendered":"SBA Disaster Loan Assistance : How do I use the 7(a) loan?"},"content":{"rendered":"

SBA Disaster Loan Assistance : How do I use the 7(a) loan?<\/span><\/h2>\n
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The 7(a) Loan Program, SBA\u2019s most common loan program, includes financial help for small businesses with special requirements. This is the best option when real estate is part of a business purchase, but it can also be used for:<\/p>\n

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  • Short\u00a0and long-term working capital<\/li>\n
  • Refinance current business debt<\/li>\n
  • Purchase furniture, fixtures, and supplies<\/li>\n<\/ul>\n

    The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Your lender will help you figure out which type of loan is best suited for your needs.<\/p>\n

    SBA 7a Loan Calculator<\/span><\/h2>\n

    Go to the URL : https:\/\/www.sba7a.loans\/sba-7a-loan-calculator-amortization-schedule<\/strong><\/p>\n

    for the Loan Calculator<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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    Am I eligible?<\/span><\/h2>\n<\/div>\n<\/div>\n
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    To be eligible 7(a) loan assistance, businesses must:<\/p>\n

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    • Operate for profit<\/li>\n
    • Be considered a small business, as defined by SBA<\/li>\n
    • Be engaged in, or propose to do business in, the United States or its possessions<\/li>\n
    • Have reasonable invested equity<\/li>\n
    • Use alternative financial resources, including personal assets, before seeking financial assistance<\/li>\n
    • Be able to demonstrate a need for a loan<\/li>\n
    • Use the funds for a sound business purpose<\/li>\n
    • Not be delinquent on any existing debt obligations to the U.S. government<\/li>\n<\/ul>\n

      Some businesses may not qualify for a 7(a) loan. Read more about\u00a0what the SBA considers an ineligible business.<\/p>\n

      \"Small<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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      What do I need to apply?<\/span><\/h2>\n<\/div>\n<\/div>\n
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      When you\u2019re ready to apply, you\u2019ll need to gather the appropriate documents. Start the process by working with your local lender within SBA guidelines.<\/p>\n

      Use the following checklist to ensure you have everything the lender will ask for. Once your loan package is complete, your lender will submit it to SBA:<\/p>\n

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      • Borrower information form<\/strong>:\u00a0<\/strong>Complete\u00a0SBA Form 1919\u00a0and submit it to an SBA-participating lender.<\/li>\n
      • Background and financial statements<\/strong>: Complete both\u00a0SBA Form 912\u00a0(statement of personal history) and\u00a0SBA Form 413\u00a0(personal financial statement). These help SBA and other stakeholders assess your eligibility.<\/li>\n
      • Business financial statements<\/strong>: Submit the following to help show your ability to repay a loan:\n
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        • Profit and loss statement\u00a0<\/strong>\u2013 Current within 180 days of your application. Also include supplementary schedules from the last three fiscal years.<\/li>\n
        • Projected financial statements\u00a0<\/strong>\u2013 Include a detailed, one-year projection of income and finances and explain how you expect to achieve this projection.<\/li>\n<\/ul>\n<\/li>\n
        • Ownership and affiliations<\/strong>:\u00a0<\/strong>Provide a list of names and addresses of any subsidiaries and affiliates, including concerns, in which you hold a controlling interest or that are otherwise connected to you.<\/li>\n
        • Business license or certificate<\/strong>: Provide a copy of the original business license or certificate of doing business. If your small business is a corporation, stamp your corporate seal on the SBA loan application form.<\/li>\n
        • Loan application history<\/strong>: Include records of any loans you may have applied for in the past.<\/li>\n
        • Income tax returns<\/strong>: Include signed\u00a0personal<\/strong>\u00a0and\u00a0business<\/strong>\u00a0federal income tax returns of your business\u2019 principals for the previous three years.<\/li>\n
        • Resumes<\/strong>: Include personal resumes for each principal.<\/li>\n
        • Business overview and history<\/strong>: Provide a history of the business and its challenges. Include an explanation of why you need the SBA loan and how it will help your business.<\/li>\n
        • Business lease<\/strong>: Include a copy of your business lease, or a note from your landlord, with the terms of the proposed lease.<\/li>\n<\/ul>\n

          If you are buying an existing business, gather the following information:<\/p>\n

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          • Current balance sheet and profit and loss statement<\/li>\n
          • Federal income tax returns for the previous three years<\/li>\n
          • Proposed bill of sale including the terms of sale<\/li>\n
          • Asking price with schedule of inventory, machinery and equipment, and furniture and fixtures<\/li>\n
          • Franchise, jobber, or licensing agreements<\/li>\n
          • Proof of equity injection<\/li>\n<\/ul>\n

            You may be required to submit more SBA forms based on the specific use of proceeds or fees paid on a loans package or to a broker or agent.<\/p>\n

            Fast Loans for Bad Credit : Best Bad Credit Loans in July 2021<\/a><\/p><\/blockquote>\n