During these difficult and fluctuating times within the economy, it presents the perfect time to focus on simplifying and streamlining your company. The current Corona virus is causing so much uncertainty in our world and certain to make an impact in a few important places: it will impact the revenue stream(s)and will highlight your expenses. For this reason, it is wise to take the time to evaluate your bottom line. You simply can’t waste this opportunity to evaluate your revenue stream(s) and expenses!
Regardless of a pandemic, you should have a business plan for your current and future growth. The government is currently providing financial assistance in the way of loans provided by the Small Business Association (SBA). This can help stabilize your company, help with cash flow, and can help springboard future growth once the current market improves.
It can be vital based on your current situation that you apply for this loan even if you don’t think you qualify. The government wants small businesses to have access to money in order to keep the economy going and the trucking business is the lynch pin to our economy. You should feel neither intimated nor ashamed to apply for an SBA loan. So how can you go about securing a loan that offers your business greater stability and flexibility in these uncertain times? Bookkeeping It Simple is here to offer answers to all of your questions.
It is a simple 3 step process:
1). Apply Online for the Loan ( Small Business Association (SBA) )
2). Damage Verification + Loan Processing, Decision Made
3). Loans Closed + Funds Distributed
Step 1: Apply Online for the Loan
To get started in applying for a loan, you will first have to visit the U.S. Small Business Administration’s website dedicated to Disaster Loan Assistance. Here you can select “apply online” before entering the necessary information in the fields required. Required fields are marked by an asterisk. If the information is incomplete and needs clarification, the system will alert you on the changes required. Beyond that, there are a total of 7 sections you need to complete after you register:
- Apply online
- Select Economic injury, for the reason for you requested loan.
- Disaster Business Loan Application
- Input detail around who is requesting this loan
- Personal Financial Statement
- List all Income Source, Personal Assets, Personal Debts.
- Schedule of Liabilities
- List Business Notes, Mortgages and Accounts Payable
- Request for Transcript of Tax Return
- Approval for SBA to request Tax Return for Income Verification
- Applicant Business Federal Tax Return
- Attach most recent Federal income tax returns for the applicant business, an explanation if not available
- Truthful Information Certification
- Affidavit that information is correct to the best of your knowledge
VIII. Submit Application
Step 2: Damage Verification + Loan Processing, Decision Made:
Upon submitting your online application for the disaster relief loan, the SBA will review your credit, eligibility, and assign a loan officer to work with you in order to determine the loan amount. Although, the goal to provide a final determination is within 2-3 weeks, it is important that you act as soon as possible to secure your loan.
Step 3). Loans Closed + Funds Distributed:
Once, a determination has been made and your company is cleared for a loan, the SBA will prepare and send loan closing documentation for your signature. Make sure to sign this document as quickly as possible and send it back to the proper authority. Once the SBA has received your signed Loan Closing document, the initial disbursement will be made within an estimated 5 days per the SBA.
At this time, a case manager will be assigned to you in order to help you meet the loan conditions and schedule subsequent disbursements until you receive the full loan amount. The loan can also be adjusted after closing due to any circumstances that may change.
Your Questions Answered
At Bookkeeping It Simple, we pride ourselves on offering the help you need to secure financial security. In order to further assist you in securing a SBA loan that will stabilize and provide flexibility to your company and facilitate future growth, we have compiled a list of the most common questions our clients have regarding SBA loans. Here are the answers you need to the questions you still have regarding an SBA loan for your freight forwarding or trucking company.
What does government assistance offer for your business?
The government has announced they will provide low-interest disaster recovery loans for small businesses that have been severely impacted by the Coronavirus (COVID-19). The goal of this relief is to help overcome the temporary loss of revenue that a small business is experiencing in these uncertain times. This aid is available for businesses of any size and offers loans of up to $2 million.
What is the purpose of this assistance?
There are a number of ways in which the government assistance currently offered can help your business. These loans may be used in a variety of ways including but not limited to paying fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. In such uncertain times, it is important that you have a plan in place to secure the financial success of your company, ensuring regular operations aren’t limited and that your employees receive the paychecks they rely on.
What is the interest rate?
The interest rate is 3.75% for small businesses without credit available elsewhere. Businesses with credit available elsewhere, however, are not eligible to receive a loan.
What is the repayment plan?
When applying for any loan, it is important that you have a full understanding of how the repayment plan works. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, however, and are based upon each borrower’s ability to repay their loan.
Trust Bookkeeping It Simple for All of Your Financial Needs
Having your books in order is always an important part of conducting your business, but especially in the uncertain times that we currently find ourselves in. Not only will having your books up to date assist you in understanding the overall financial stability of your business, but it will also strengthen your ability to apply for a loan as well as ease the burden of repayment. For this reason, you need bookkeeping services that do more.
At Bookkeeping It Simple, we pride ourselves on going above and beyond, offering greater peace of mind starting with your books. With our bookkeeping services, you will never have to wonder whether or not you are in good financial standing and you will always have a plan in place for situations such as the one our country currently finds itself in. Ensure that your business has the financial security it needs to thrive, contact us today to get started. If you need any assistance or have any further questions, feel free to email me at firstname.lastname@example.org. I’ll be happy to assist you!
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