How to apply for small business loan from stimulus package - tradeprofinances.com

How to apply for small business loan from stimulus package

## How to Apply for a Small Business Loan from the Stimulus Package

The recently passed stimulus package includes several provisions designed to help small businesses weather the economic downturn caused by the COVID-19 pandemic. One of these provisions is a $350 billion Small Business Administration (SBA) loan program.

Small businesses can apply for these loans through the SBA’s website. The application process is relatively straightforward, but there are a few things you need to do to prepare.

### Eligibility Requirements

To be eligible for a small business loan from the stimulus package, you must meet the following requirements:

* Your business must be a for-profit entity.
* Your business must have been established before February 15, 2020.
* Your business must have fewer than 500 employees.
* Your business must have a physical location in the United States.
* Your business must have been impacted by the COVID-19 pandemic.

### How to Apply

To apply for a small business loan from the stimulus package, you will need to:

1. Visit the SBA’s website and click on the “Apply for a Loan” button.
2. Select the “Economic Injury Disaster Loan” (EIDL) program.
3. Complete the online application.
4. Submit your application.

The SBA will review your application and make a decision within 21 days. If your application is approved, you will receive a loan amount of up to $10,000.

### What to Expect After You Apply

Once you have applied for a small business loan from the stimulus package, you can expect the following:

* The SBA will review your application and make a decision within 21 days.
* If your application is approved, you will receive a loan amount of up to $10,000.
* The loan will have a term of up to 30 years and an interest rate of 3.75%.
* You will not be required to make any payments on the loan for the first six months.

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### How to Use the Loan Funds

You can use the funds from your small business loan from the stimulus package to cover a variety of expenses, including:

* Payroll
* Rent
* Utilities
* Inventory
* Marketing
* Other operating expenses

You cannot use the loan funds to pay off debt or make capital expenditures.

### Conclusion

The SBA’s small business loan program is a valuable resource for businesses that have been impacted by the COVID-19 pandemic. If you meet the eligibility requirements, we encourage you to apply for a loan. The application process is relatively straightforward, and the funds can be used to cover a variety of expenses.

## Additional Resources

* [SBA’s website](https://www.sba.gov/)
* [EIDL program website](https://www.sba.gov/disaster-assistance/economic-injury/eidl/)
* [How to apply for an EIDL loan](https://www.sba.gov/disaster-assistance/economic-injury/eidl/apply-for-an-eidl-loan-advance/)

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