By Debbie Gregory.

The federal Small Business Agency known as the SBA has a few new ways to help small businesses stay in business while we all navigate the COVID crisis. Thanks to H.R. 748 the SBA has been able to expand their loan programs with new offerings for small businesses as well as some specific options for large corporations.

What Other Assistance does H.R. 748 Provide?

The program also provides $17 billion dollars to small businesses that have existing SBA loans. These funds can be used to pay six months of principal and interest payments on existing SBA loans.

1.) Additionally, the program provides $10 billion dollars for disaster loans and emergency grants. Each of these types of loans are limited to $10,000 per small business. These types of loans are quite like the Paycheck Protection Program or PPP described in part one of this mini article series.  They can be used for other operational expenses beyond payroll, mortgage or rent, and utilities.   In theory, any small business that applies for an economic injury disaster loan receives an advance, within 3 days, of $10,000 regardless of whether they eventually are approved for the loan. This $10,000 advance does not need to be repaid either. The loan itself can be for up to $2 million dollars at a low interest rate (currently it is 3.75% for small businesses and 2.75% for nonprofit organizations). Repayment terms vary. You can apply for this loan directly from the SBA here> https://covid19relief.sba.gov/.

2.) The program also provides $265 Million dollars for SBA business development services. The SBA offers Small Business Development Centers (SBDCs) that provide no-cost services for small businesses and entrepreneurs that will assist in critical business areas such as:

• Consulting
• Mentoring
• Training services
• Business development services
• and much more

What Other Financial Assistance Programs Have Been Added for Businesses that Do Not Qualify for Other SBA Programs?  

The COVID-19 pandemic is having severe economic consequences all over the United States. Many larger businesses are ineligible for SBA programs. However, the goal of H.R. 748 is to assist large employers as well. Some of the additions that can help larger companies include:

1.) H.R. 748 states that the Federal Reserve can now make loans, as well as loan guarantees, to businesses not covered by other programs.  They can also now make loans to state and local governments. Unlike the SBA programs for small businesses, the Fed cannot forgive these loans and borrowers must repay them.

2.) H.R. 748 also provides the federal -19 pandemic. The funds are as follows:

• $25 billion for loans to passenger air carriers
• $4 billion for loans to cargo air carriers
• $17 billion for loans to businesses critical to maintaining national security
• $32 billion for additional financial assistance to air carriers and related employers (such as caterers and airport contractors)

Small Business or Large Corporation – if you need help to keep your business afloat while the COVID-19 pandemic continues to rage across the United States, then check out what is available to you from the SBA and H.R. 748.   We advise that patience is in order.

If you are not yet a member of VAMBOA, the Veterans and Military Business Owners Association, we invite you to join.  Please be advised that there are not any dues or fees and you can use our seal on your collateral and website.   You may register for membership here:   https://vamboa.org/member-registration/ ‘’

Everyone stay safe and healthy!

By Debbie Gregory.

According to the U.S. Small Business Administration known as the SBA, there is currently one veteran-owned business for every ten veterans in the United States. Access to capital is still the biggest challenge for veteran entrepreneurs to start and grow their business. Veterans have proven to be successful business owners and with the help of a veteran business loan, they can often grow their company to higher levels and achieve greater success.

Right now, during the CoronaVirus Pandemic, the SBA is relaxing restrictions and offering better terms and in some instances without interest and/or forgiving loans.  Please check what is being offered at this time!

Additionally, if you are a veteran, how you apply for a small business loan is particularly important since veterans are provided special federal support programs that are not available to non-military personnel.  Because of this you need to consider your options carefully and look closely at your business history, credit score, revenue, overall financial health, and more.

Generally speaking, as a veteran, you would apply for a loan pretty much like anyone else would. You will need to collect together past financial statements, a well-thought out business plan, and other relevant business documentation. You will need a good credit history as well as strong finances to qualify.   Under normal circumstances, a poor credit history and weak financials will make it difficult to obtain an affordable interest rate on a small business loan.

The Small Business Administration (SBA):

Both the SBA.gov site and The Office of Veterans Business Development site provide entrepreneurial training programs for veterans. These programs teach you the basics of entrepreneurship, business financing, tips on how to write a business plan, and much more.

It is important to keep in mind that any loan you may receive from the SBA isn’t coming directly from the SBA. Instead, you are borrowing money from a traditional financial institution with the backing of the SBA.

While it does take quite a bit of time and resources, applying for the loan is actually the easy part. Choosing a loan that is the best fit for your needs is a lot trickier. Before you can make that decision, you will need to figure out exactly what your business needs are. What exactly do you need the money for?

• Do you just need a safety net?
• Are you investing in equipment to start, or grow, your business?
• Do you need funds to order inventory?

Answers to questions like these will determine the type of loan that would be the best fit for your business. Take time to write out your own questions and answers.

What if you cannot get a loan?

If a loan isn’t the right fit for your business, consider other types of financing. There are many other options that could be a good fit, such as:

• A line of credit
• Business credit cards
• Equipment financing
• Invoice factoring
• Merchant cash advances
• and more

Veterans make up a sizeable number of small business owners in the U.S. Don’t let a lack of funding stop you from starting or growing your dream business.