What You Need to Do to Apply
The following was provided via Choice Hotels Corporate Comuunications.
The Small Business Administration (SBA) introduced significant changes to the loan process that make it easier and faster to obtain funding for your business:
- Processing time for many has been reduced from 60 days to three weeks or less.
- Applications are shorter and streamlined.
Do you need help covering your mortgage? Are you able to pay your staff?
These are just some of the issues facing many in the hotel industry right now.
There are loans that may be available to help now, even if you have been denied in the past.
SBA Disaster Relief loans are available in all states that have declared a disaster and offer:
- No payment for the first year – NEW
- Up to $2 million.
- Rates as low as 3.75 percent for 30-year loans.
Visit the SBA website for details on how you can apply today. Once you begin your application, you will have access to a detailed checklist that will help walk you through each step of the process.
Currently, SBA Disaster relief loans are based on the affiliated group of the property. We are hopeful that once passed, the relief bill will both increase the cap dramatically and grant loans on an individual basis.
We continue to track action in the Senate today on the proposed relief legislation. We are working hard with the industry to help ensure that the final bill includes the relief that you and your fellow hoteliers need. Once the legislation is enacted, we will host Town Hall meetings and provide full access to new support that may be made available for your hotel.
While we don’t know what the final relief bill will include, we encourage you to begin to gather the following documents so that you are able to act quickly once a relief package is in place. These are many of the same documents that you will need if applying for an SBA Disaster Relief loan now.
- Schedule of business liabilities (debt schedule) of current required payments.
- Copy of the 2019 business tax return (if not filed and/or on extension provide 2019 P&L along with a copy of 2018 business tax return).
- A completed SBA PFS (personal financial statement) for each individual who owns 20% or more of the business concern.
- Copy of the 2019 personal tax return for each individual who owns 20% or more of the business entity (if not filed and/or extension, provide 2018 personal tax returns).
- Any other businesses owned 50% or more (noted by their personal K-1) by any individual that has 20 percent ownership in the small businesses will need to provide the same detail as the small business applying for the loan. Debt schedule, 2019 tax return or P&L along with a current/interim P&L.
- Completion of a 4506T document that will allow the lender access to your IRS transcripts and your personal and business tax returns.
- Have available documentation for payroll requirements including number of employees (PT/FT), how they are paid: weekly, bi-weekly etc. and your average monthly payroll. Any monthly bills including utilities, phone, cable, rent, other debt obligations and/or accounts payable. Documentation should be formal billing statements for reference.
- Available to download through SBA: detailed checklist of items and questions to prepare; a fillable PDF version of a schedule of liabilities; 4506T and a SBA PFS.
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