During last night’s statement on the Trump Administration’s response to COVID-19 (coronavirus), President Trump requested action from the US Small Business Administration (SBA) to support small businesses through the economic turbulence caused by COVID-19.
“I am instructing the Small Business Administration to exercise available authority to provide capital and liquidity to firms affected by the coronavirus,” President Trump said. “Effective immediately, the SBA will begin providing economic loans in affected states and territories. These low-interest loans will help small businesses overcome temporary economic disruptions caused by the virus.”
This support for small business signals that the administration is taking the hardship faced by small businesses seriously, and we can expect action to increase the funding of SBA loans in the near future. It’s equally important to note that as with most government initiatives, “immediate” doesn’t necessarily mean right this minute.
“I’m asking Congress to increase funding for this program by an additional $50 billion,” President Trump elaborated. Given the necessity of Congress’s approval, we can expect that these new measures will take a bit of time to enact, especially if a Capitol Hill outbreak of COVID-19 leads to a Congressional recess.
In addition to his SBA loan announcement, President Trump has the authority to take executive action to support small businesses through COVID-19, which he indicated he will do. “Using emergency authority, I will be instructing the Treasury Department to defer tax payments without interest or penalties for certain individuals and businesses negatively impacted. This action will provide more than $200 billion of additional liquidity to the economy.”
While we may have to wait days or weeks for Congress to approve the additional funding for SBA loans, you can apply right now. The easiest, fastest way to do so is to apply through a lending marketplace, which gives you options for lenders.
You can find out everything you need to know about what it takes to qualify for an SBA loan here.
It typically takes somewhere between 30 and 90 days to get an SBA loan. Funding time varies based on different criteria, including which type of SBA loan you’re applying for. You can learn more in our overview, “How Long Does It Take to Get an SBA Loan?”
We understand that your small business may not have time to wait for these new measures to be enacted. Luckily, there are several small business loan options that provide quick funding for when you need fast access to capital. When you apply through Lendio, our funding managers will walk you through all your options and recommend the best financing solution for your small business.
Our small business loan experts will help you determine your capital needs and may recommend auxiliary forms of financing—like short term loans, business lines of credit, ACH loans, or a merchant cash advance—to get you the capital you need when you need it.