[Guilds12]

Hi:

I am working with a business owner that owns a commercial print shop and has ~ $500k in inventory (printers) that he can use as collateral for a loan. He thinks he can only keep his doors open for another two weeks before money runs out. However, he doesn't want to get any type of lending that will prevent him from getting a SBA Loan which he has already applied for. He realizes it will take some time to get that money, but still is concerned. Will new money pose a problem with SBA lenders?

[WestCoastFunding]

Hi:

I am working with a business owner that owns a commercial print shop and has ~ $500k in inventory (printers) that he can use as collateral for a loan. He thinks he can only keep his doors open for another two weeks before money runs out. However, he doesn't want to get any type of lending that will prevent him from getting a SBA Loan which he has already applied for. He realizes it will take some time to get that money, but still is concerned. Will new money pose a problem with SBA lenders?

Tell him to get in line with the PPP or EIDL. PPP won’t affect him. EIDL cash advance won’t affect him. And if by chance he got the EIDL 30 year, 3.75% option, it would be better than the 7(a).

[Guilds12]

Tell him to get in line with the PPP or EIDL. PPP won’t affect him. EIDL cash advance won’t affect him. And if by chance he got the EIDL 30 year, 3.75% option, it would be better than the 7(a).

He's already done that, but he can't wait long enough to find out if he qualifies for the EIDL. If he gets a private loan using his inventory/equipment as collateral will that disqualify him from getting an SBA (7) loan?

[WestCoastFunding]

He's already done that, but he can't wait long enough to find out if he qualifies for the EIDL. If he gets a private loan using his inventory/equipment as collateral will that disqualify him from getting an SBA (7) loan?

I don’t know, man. During the best of times it’s extremely to get an ABL using inventory as collateral. If he were able to get one it shouldn’t disqualify him at all.

Has he tried the SBA Express bridge loan through the 7(a) lender he’s working with?

[Guilds12]

I don’t know, man. During the best of times it’s extremely to get an ABL using inventory as collateral. If he were able to get one it shouldn’t disqualify him at all.

Has he tried the SBA Express bridge loan through the 7(a) lender he’s working with?

All he has done so far is submit an application for a 7(a) loan through Live Oak Bank requesting $1 MM. I just talked to my rep at Live Oak and he said that those applications are taking a back seat to the PPP (obviously); they have 30,000 applications sitting in their queue that they are trying to work through. It will most likely be months before that application gets processed, but I don't want to help him get money from an alternate source and then find out he can't get an SBA because of me.

[Yankeeman07]

The SBA Bank I rep for are not touching the EIDL/PPP applications within the traditional SBA 7(a) loans.


PPP is to maintain payroll/benefits etc. for a 8 week period, etc. which may be forgiven - details below:
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp#section-header-5

EIDL: This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
The EIDL is a quick online application: https://covid19relief.sba.gov/#/

SBA Debt Relief :

As part of SBA's debt relief efforts,

• The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
• The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief#section-header-0

To keep updated with the constant changes go to http://www.sba.gov/updates - sign up for their email and you will then receive the invites for their 3X a week webinars/chat/lice call in for questions.

Between Treasury and SBA - thechanges in guidelines, and rules seem to occur on a daily basis.

[WestCoastFunding]

All he has done so far is submit an application for a 7(a) loan through Live Oak Bank requesting $1 MM. I just talked to my rep at Live Oak and he said that those applications are taking a back seat to the PPP (obviously); they have 30,000 applications sitting in their queue that they are trying to work through. It will most likely be months before that application gets processed, but I don't want to help him get money from an alternate source and then find out he can't get an SBA because of me.

First off, 95% of the other sources aren’t funding right now. Secondly, I don’t see why getting a bridge financing would hurt him. Thirdly, if he can’t make it another month without financing, why does worrying about the SBA matter? Lastly, there are close to 2,000 SBA lenders. Never just focus on only one.

[Guilds12]

First off, 95% of the other sources aren’t funding right now. Secondly, I don’t see why getting a bridge financing would hurt him. Thirdly, if he can’t make it another month without financing, why does worrying about the SBA matter? Lastly, there are close to 2,000 SBA lenders. Never just focus on only one.

Thank you for your feedback.

[bidmca]

I'm a confused. Is your client a commercial print shop that sells printers or provides printing services? You need to determine if you're seeking financing backed by inventory or equipment.