Mo-Kan Continues Partnership With SBA By Providing Commercial Loans | Business
The Mo-Kan Regional Council continues its efforts to help small businesses by investing in economic development loans.
SBA 504 loans are proven to have competitive, below market interest rates that are set for the life of the loan.
According to SBA estimates, more than 600,000 new small businesses are created each year, and as more businesses begin their startups in hopes of the end of the COVID pandemic, the availability of these loans would be beneficial for some assets.
“504 loans concern only six assets. It also includes real estate, construction, equipment, refinancing, ”said Nic Hutchinson, executive director of Mo-Kan.
Businesses interested in the 7 (A) loan program can expect a maximum fixed rate depending on the size of their loans, which can range from $ 25,000 to $ 5 million.
Some conditions for receiving a loan 7 (A) include businesses valued at less than $ 15 million and having an after-tax profit of less than $ 5 million per year over a two-year period, occupying 51% or more of a commercial building being renovated or purchased or using 60% or more of a commercial building under construction.
“I would say that over the last year we have really seen an increase in RLF and SBA loans,” Hutchinson said.
You can find more information about these loans as well as the revolving loan programs on the Mo-Kan website.
The SBA has also insisted that small businesses be aware of their P3 opportunities for companies wishing to keep their employees on their payroll.
The Paycheck Protection Program portal opened for First Draw P3 Loans on January 11 and is now available for Second Draw P3 Loans. Rebecca Lobina, director of small business development at Northwest Missouri State University, advises new applicants to be aware of how P3 can be used differently now than before.
“The way you can use the funds has now been extended, but not only can you use it for what you could before, which is 60% or more for the payroll if they have it. use mortgage payments for rent or utilities, interest on your business, but you can also use it for what’s called covered operating expenses, supplier costs, and covered worker protection expenses like PPE, ”Lobina said.
Already more than 100 Saint-Joseph businesses have been approved for loans ranging from $ 350,000 to $ 5 million.