A good number of people are unaware of how SBA disaster loan disbursement process 2020 works. The information provided in this blog is to help anyone who needs to know more about SBA disaster loan disbursement know more about it.
Everyone is aware of the effect of the recent pandemic on America’s economy. A lot of small businesses suffered a lot due to the lockdown. Due to this misfortune, a good number of small business owners are in search of SBA disaster loans. SBA disaster loans are one of the ways they can help themselves recover slightly from this disaster called covid-19. In as much as this pandemic has a global effect on businesses, small businesses stand a higher risk than big businesses. One of the major questions that are usually asked by small business owners is how they can apply for an SBA disasters loan. The SBA disaster loan helps small business owners going through challenges to bounce back after a disaster.
Here are the ways small business owners can apply for an SBA disaster loan:
- An SBA disaster loan can be applied by mail.
- It can also be applied online
- Another way it can be applied is in person at any of the Disaster Recovery Center.
Based on experience, it is more convenient to apply for an SBA disaster loan online. And with the recent spread of covid 19, it is also a safer method to use when applying for the SBA disaster loan. The SBA disaster loan application is not different from any other loan application. It will contain the same detail as every other loan any business owner has ever applied for, like some basic information about their business, their credit history, particulars of your business’s operations. One great thing about the SBA disaster loan is that once it is applied, business owners will be able to apply for other types of FEMA grants. There are a lot of advantages that come with applying for an SBA disasters loan.
Here are some of the details the SBA will take into consideration before approving any loan application.
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Collateral
Collateral is an integral part of any kind of loan. It is impossible to separate collateral from a loan, they work hand in hand especially when the loan is above $20,000. The SBA will take into consideration the collateral offered for the loan. Fix assets like a vehicle, a piece of machinery or even a property can be used as collateral. The collateral has to be equal to the value of the loan they are applying for.
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Credit Score
Another factor that is usually taken into consideration by the SBA is the business owner’s credit score. The credit score is a representation of the quality of their credit history and is represented in numbers. The credit score analysis is carried out based on their previous debt and how they were able to obey the payment plan. Hence it is important to maintain a good credit history. If business owners have a good credit score, they would stand a greater chance of being considered for the loan.
