Since April 2020, the Small Business Administration has provided loans that can help many types of businesses, and during the last five months, the organization has modified the terms of the loans. Currently, a company can request $2 million, yet the interest rate will not exceed 3.75 percent. The loan may have a duration of 30 years, or the borrower could request shorter loans, provide additional payments or change the terms of the loan.
What Is an Economic Injury Disaster Loan?
This loan can help businesses that have been affected by the pandemic, and once the companies receive the extra funds, the businesses may purchase inventory, hire new employees, buy necessary equipment or create innovative advertisements. The loan has helped thousands of businesses, yet many companies may still require additional funds.
Fortunately, the Small Business Administration has indicated that non-profit organizations could also receive the loans. After the organization provides the loans, the non-profit foundations can make monthly payments, and the foundations could pay off the loans early.
According to Lanter by SoFi, “Before the Small Business Administration provides the loan, the organization may examine the company’s revenue, the monthly expenses and multiple types of equity.” The organization could also determine the credit score of the owner, and if the entrepreneur has an excellent credit score, the organization may substantially reduce the interest rate. According to multiple reports, the interest rate will not exceed 4 percent, and usually, the non-profit organizations can receive loans that have an interest rate of less than 2.8 percent.
Examining Multiple Changes That Have Affected the Program
In September 2021, the Small Business Administration announced that the organization increased the available loans. Previously, many companies could receive $500,000, yet during the last two months, some businesses have received loans that are worth more than $2 million.
The organization created a program that will allow the borrowers to defer the payments. After the businesses receive the loans, the companies could defer the payments for two years, and subsequently, the businesses can make the monthly payments.
Recently, the organization has implemented strategies that will help the companies to access the funds. Once a company applies for a loan, the organization could approve the application within 30 days, and the business may receive the funds in less than 30 days. After the organization created this program, the companies could quickly access the funds, yet this program will only benefit businesses that request loans that are worth less than $500,000.
If a business employs less than 500 people, the company could apply for the loan, and sometimes, larger businesses may also receive the loans. Recently, the organization slightly modified the application. According to several reports, an entrepreneur can usually complete the detailed application within one hour.
Reviewing a Summary and Obtaining a Loan
Lantern by SoFi is a reputable business that provides many types of loans, and once an entrepreneur contacts Lantern by SoFi, the company could offer the EIDL targeted advance that can help the business. The representatives may also provide a free consultation, describe the terms of the loan, indicate the duration of the loan and provide helpful recommendations.
