March 20, 2020
Dear WZ Client,
As we press through these trying times, we are working hard to uncover all the available options to help you and your business. A potential option is the SBA Express Loan Program.
In order to qualify, a business must meet the eligibility requirements determined by the SBA under the SBA 7(a) program, which are:
- You must be registered as a for-profit business
- As the business owner you can’t be on parole
- Your business must have fewer than 500 employees and less than $7.5 million revenue on average each year for the past three years
- Your net income must be under $5 million (after taxes and not counting carry-over losses), and your tangible net worth must be less than $15 million
- You must show you’re investing your own time and money into the business, having “invested equity”
- Your business must be physically based in the United States
- Your business must not be speculative, illegal, or non-profit
- You’ll need to show you tried and failed to get funds from other financial lenders
- You’ll need to prove you have a sound business purpose
- You’ll need to prove you are not delinquent on any existing debts to the U.S. government
The key terms for the SBA Express Loan include:
- Max loan amount: $350,000
- Maturity: 5-10 years (7 max for a line of credit), or up to 25 years for real estate
- Application turnaround time: Within 36 hours
- Fund Dispersal time: 45-90 days after approval
We highly encourage all eligible businesses negatively impacted by COVID-19 to click on the link here for further information on how to apply for the SBA Express Loan Program.
The WZ team remain committed to keeping you “in the know” and support you, your family and your business in every way that we can.