I've got a small business in Georgia and we were blessed to only have been shut down for one month last year due to covid lockdowns. During our state mandated lockdown (approx. March 25th to April 25th) we generated no sales and began to fear that we might experience that for months on end...much like many other states are experiencing now.
Due to the lack of income and potential for it to continue, we applied for and received an SBA loan. Now, we haven't needed it and in fact, we haven't even touched the money. It's currently a 30 year note at 3.75% and it's even interest only for the first 24 months. On top of that, it only required a $100 closing fee. It's been reassuring to know it's available if we need it, but I still don't like a non performing asset.
Now, SBA has offered to expand the available amount to 4x the original offer. Otherwords, if you were provided $10k the first time, your now 'potentially' going to be approved for $40k...or an additional $30k. Our total would move up into the low six figure range.
I'm considering applying for the increase to ensure I'm on good footing in case we see a recurrence or drastic change in the covid protocols.
I would love to hear thoughts on the benefits and drawbacks of this potential decision. Any suggestions on how a business might park these funds to earn a bit on them to hedge against the accruing interest?
Submitted April 17, 2021 at 11:34PM by FalconsFan71 https://ift.tt/2P2uULQ
