How to Use an SBA Loan to Purchase New Utility Vehicles
The sudden and profound effects of the coronavirus caught small business owners across the country off guard. If you run a construction or repair company, the demand for your services may be fluctuating as your clients assess the implications of COVID-19 and determine how to allocate their funds.
Thanks to the financial relief offered through the Small Business Association, small business owners like yourself have loan options available to keep the wheels turning until the threat of the coronavirus passes. This may be the perfect time to use an SBA loan to purchase new utility vehicles.
Since the government is making SBA loans easier for small businesses of all sizes to obtain in the midst of this emergency, you may have access to flexible loans and grants that you normally wouldn’t. Here’s how to put those funds to good use by growing your business with new utility vehicles.
SBA Express Bridge Loans
An SBA Express Bridge Loan (EBL) helps small businesses quickly access up to $25,000. This type of emergency financing is granted for disaster-related purposes to eligible small businesses and is designed to bridge the gap while businesses await long-term SBA financing.
In light of the widespread impacts of the coronavirus on businesses nationwide, the SBA has expanded this program’s eligibility to include all small businesses in the U.S adversely impacted by the COVID-19 Emergency Declaration issued by President Trump on March 13, 2020.
Although EBL loans are typically only available for six months after an Emergency Declaration, the SBA is allowing small businesses to apply for up to $25,000 in EBL financing through March 2021 and allowing up to 7 years to repay the loan.
This offers small business owners an accessible and flexible way to obtain the financing they need to expand their fleet of utility vehicles. Since the maximum interest rate permitted on an SBA EBL loan is Prime + 6.5%, business owners can use an EBL loan to pay a reasonable and affordable interest rate on the funds used to purchase utility vehicles and enjoy the benefit of repaying it over 84 months.
SBA Economic Injury Disaster Loans
In direct response to COVID-19, the U.S. Small Business Administration is also providing a loan advance up to $10,000 of economic relief to businesses experiencing temporary difficulties. Any small business with less than 500 employees, including sole proprietorships, independent contractors, and the self-employed can qualify.
Since the first $10,000 of this EIDL does not have to be repaid, it is the perfect way to provide a full or down payment on a used utility vehicle. The SBA is working to make the application process as quick and easy as possible, so you can apply in minutes and have your funds within a few weeks.
Car Credit offers the fast, flexible, and personalized vehicle sales you need to keep your business running. We’ve helped drivers throughout Tampa, Florida, purchase quality used cars for over 25 years. Call us today at (866) 542-6385 to learn more about our extensive inventory and easy online car buying process.