Thinking of becoming part of the Mosquito Authority family? We offer a variety of franchise funding options. One of these options is a Small Business Administration (SBA) loan.
Because of the financial difficulties many small businesses are facing due to the COVID-19 pandemic, the SBA is now providing debt relief for existing SBA loan borrowers under the new CARES Act.
Previously, the SBA was only providing debt relief for borrowers whose loans had been fully dispersed. Now, however, all borrowers whose loans have been approved, even if not fully dispersed, are eligible for this debt relief. This revision to SBA guidelines has made SBA loans an even more attractive option for franchise funding.
What does this mean for franchise owners with SBA loans?
- As part of the CARES Act, the SBA is now authorized to pay 6 months of principal, interest, and associated fees that borrowers owe for 7(a), 504, and Microloans.
- For loans not on deferment, SBA will make monthly payments based on the next payment due on eligible loans for a total amount equivalent to no more than 6 months of installment payments.
- For loans currently on deferment, SBA will begin making monthly payments with the first payment due after the deferment period ends for a total amount equivalent to no more than 6 months of installment payments.
With these new SBA loan guidelines, new business owners have more flexibility when it comes to funding their franchises. By covering six months of fees associated with starting a franchise, the SBA has made now an ideal time to become a franchise owner.
For more information on SBA loans under the CARES Act, read this article.
Check out our blog on securing an SBA loan to fund your Mosquito Authority franchise.
