Here’s how SmartBiz Loans® is addressing the COVID-19 coronavirus internally and externally along with the types of funding that can help businesses during this time.
SmartBiz internal COVID-19 policy
SmartBiz is an internet company so we’re open for business as usual. We have equipped our teams in San Francisco and Austin to work remotely from home as appropriate to keep them safe and healthy. The focus of our team continues to be helping you find the right financing for your business and providing you with top notch customer service.
SmartBiz and your loan application
There has been no change to the SmartBiz Loans application process. The SmartBiz team and the banks in our network continue to work to help you get the right financing at the right time. We’re happy to help you with non-disaster related loans from banks in the SmartBiz network including SBA loans for working capital, debt refinance or commercial real estate. Bank Term loans and more customer financing solutions are also offered. With a broad range of financial options, we can help find the right fit for the majority of businesses in the U.S.
What's the impact of the coronavirus on interest rates for small business loans?
To support the economy during the coronavirus pandemic, the Federal Reserve on Sunday announced it would cut its target interest rate close to zero. The interest rate drop along with the new SBA fee rules can help decrease the price of a loan from banks in the SmartBiz network.
For current rates and details, visit the SmartBiz Loans website.
Why it’s a good time to seek funding
Now is a great time to apply for low-cost funding for working capital or high-interest debt refinance. The Federal Reserve has lowered the interest rate to near zero – lowering the cost of capital.
SBA loan rates from banks in the SmartBiz network are now only 4.75% to 7.00% for loan amounts between $30,000 and $5 million (Prime Rate plus 1.5% to 2.75%).
How low-cost funds can help your small business
In these uncertain times, it’s good to think ahead. Proceeds from a low-cost loan or other financing solution can be used to strengthen your business. Funds can be used for working capital, to shore up cash flow, or for savings.
Some businesses, like online retailers or health-related companies might experience an uptick in business. In that case, funds can be used for inventory, equipment purchases, marketing or even for hiring to handle additional day-to-day duties.
If you need funding now
SmartBiz has a streamlined application process and you can get funds as fast as 7 days after your application is completed and approved. Use our secure software to see if you pre-qualify with a lender in our network in less than 5 minutes without impacting your credit score.* SmartBiz facilitates:
SBA loans have low rates, long repayment terms, and low monthly payments.
A Bank Term loan from lenders in the SmartBiz network is a medium-term, fixed-rate loan with stable monthly payments. These loans are a great fit for many businesses that want a bank loan quickly. The same streamlined process is used for term loans through banks in the SmartBiz network.
You might want to explore other types of financing if you’re in a specialized industry, your credit scores aren’t where they need to be, if you run a newer business, or if you don’t yet have the revenue required for an SBA or Bank Term loan.
SBA disaster loans
SmartBiz Loans does not facilitate SBA disaster loans since these are provided by the government directly, but we can help you with other SBA and non-SBA loans. However, the SBA reports that wait times for disaster loans were three weeks as of March 16th and are likely to get longer as more small businesses apply. Disaster loans are only available in designated disaster areas. This is determined at the state level. The SBA reports that disaster loans are for the very most impacted businesses with no access to any other options. More information is available from the SBA disaster assistance customer service center. Call 1-800-659-2955 or email firstname.lastname@example.org.
The majority of loans will continue to be served by SBA’s traditional 7(a) program. This is the program in which SmartBiz facilitates SBA loans. If a business is interested in a traditional SBA 7(a), please come to us for help.
If you’ve determined that additional funds can help your business, start an application with SmartBiz Loans here. The SmartBiz team is ready to help you access the right funding at the right time.
*We conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, the lenders with whom we work will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and happens after your application is in the funding process and matched with a lender who is likely to fund your loan.