In the era of Covid, banks have clearly altered their sentiments to a variety of industries for SBA loans such as restaurants and hotels, which we have documented recently in other posts.
All business owners looking for loans should be prepared to answer questions about Covid. Typical questions potential borrowers can expect to be asked:
- Was the business shut down due to Covid?
- What steps did you take to mitigate the negative impacts?
- How long do you anticipate Covid wile impact your business?
- Were key employees let go and not rehired?
- Has the business had a difficult time collecting Accounts Receivables?
- Are your customers concentrated in certain industries and have those industries been materially impacted negatively by Covid?
- Has your supply chain been impacted?
- Have your gross profit margins been squeezed?
- Did you receive an EIDL or PPP loan?
- If PPP loan was obtained, do you expect that SBA loan to be fully forgiven?
- Do you have detailed financial statement projections you can provide that incorporate the impact of Covid?
Looking for an SBA loan for your business? Use our Find an SBA lender tool and we introduce you to a handful of banks.