Question to the DL: Strategies to access the new SBA loans for a startup during a disaster?
Disaster Lady Answer: Ah, our old friends at the SBA (Small Business Administration). For many of us, we wouldn’t have a business unless we occasionally used SBA backed loans. However, the SBA Disaster Loan is a whole different ball game. That is because the loan actually bypasses banks and the money comes directly from the Department of the Treasury. You go online and fill out the application and supporting forms. (You haven’t lived until you have filled out a Personal Financial Statement! LOL!) They will then look at the assets that you have for collateral and make a determination regarding the amount of money that can be loaned. The rate is 3.75% for 30 years. If you do not have any collateral to put forth, then the most they will loan you will be $25K. However, for some small businesses, even that much can make a difference.