- The current coronavirus pandemic is creating hardship for business owners across our country and many segments of our nation’s economy. There is light at the end the tunnel for many due to the federal government’s Economic Injury Disaster Loan (EIDL) Program providing $50 Billion in Small Business Administration (SBA) loans to distressed businesses.
- While this initiative is extremely important in providing sustenance to struggling businesses, what truly drives our nation’s economy is the continued entrepreneurial spirit of buyers and banks. Buyers who seek to acquire established businesses from the wave of retiring baby boomers seeking retirement. Banks willing to be leaders in supporting these community initiatives.
- Increases the SBA Express Line of Credit maximum loan amount from $350,000 to $1 million providing Buyers more room for investing in growth strategies without leveraging liquidity.
- All SBA Lenders will have fees related to loan origination waived, effectively reducing risk and improving profit margins.
- Improves the likelihood of banks to lend, as the government backed loan guarantee on all SBA 7(a) loans increases from 75% to 90% of loan amount.
- Provides increased flexibility to the funding of Economic Injury Disaster Loans.
Tom Stadler-Finance Director, SBA Loan Specialist, Licensed Business Broker, CMSBB firstname.lastname@example.org