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03-25-2020, 12:54 PM #1
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CARES Act Expansion of 7a: Is every business eligible?
Has anyone heard if the pending stimulus bill would eliminate for 7(a) Express Loans the normal restrictions and ineligible business categories?
The current text seems to increase eligibility to any merchant in business on March 1st & have less than 500 employees. Or is this really just going to be the 7(a) Express Loan process without the need to prove you can't receive credit elsewhere?
http://www.congress.gov/bill/116th-c...bill/3548/text
(b) Increased Eligibility For Certain Small Businesses And Organizations.—
(1) IN GENERAL.—During the covered period, any business concern, private nonprofit organization, or public nonprofit organization which employs not more than 500 employees shall be eligible to receive a loan made under section 7(a) of the Small Business Act (15 U.S.C. 636(a)), in addition to small business concerns.
(2) EXCLUSION OF NONPROFITS RECEIVING MEDICAID EXPENDITURES.—Paragraph (1) shall not apply to a nonprofit entity eligible for payment for items or services furnished under a State plan under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) or under a waiver of such plan.
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03-25-2020, 02:34 PM #2
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Yes, nonprofits would be eligible.
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03-25-2020, 02:44 PM #3
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So this list of ineligible 7(a) recipients doesn't apply?
https://www.sba.gov/sites/default/fi...20111122_0.pdf
Sorry to ask the obvious and ugly quesiton-how does anyone sell an MCA or any small business loan product, when literally anyone is eligible for a 7(a) Express Loan?
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03-25-2020, 05:24 PM #4
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03-25-2020, 08:58 PM #5
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- May 2016
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Brokers can potentially be eligible, I have seen them approved and funded - but that is not every broker, SBA is very nuanced and it is not a simple answer. Here's a read if anyone's interested. It's the SBA's SOP's (368 pages) outlining the specifics of the SBA program.
That being said, as an SBA insider I've personally seen 3 different versions of the bill being considered. Until we have something passed, it's really tough to speculate on what the final language will contain. I'm optimistic SBA lending will be supercharged, regardless.
Demand is very strong, and should only continue to grow.
SmartBiz is the top national originator of SBA loans under $350k - jared.kogan@smartbizloans.com
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03-26-2020, 05:50 AM #6
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03-25-2020, 04:09 PM #7
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- Feb 2018
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i would say you can use the analogy why would a merchant take a 18 mo deal with first pos and than go stack. There will always be a need for money. the first line of attack will def be the sba loans for merchants as that makes the most sense, but, they will have other needs the SBA may not have addressed.
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