The United States Congress has passed several measures in response to the COVID-19 pandemic designed to help small businesses, including tax rebates, tax filing extensions, business loans, emergency relief, and modified tax treatment. Perhaps the most significant benefit, the paycheck protection loan—also known as the coronavirus loan—can convert into a grant for small business owners that use it to cover payroll costs.

A short while ago the CARES Act was signed into law, making $349 billion available to small businesses! So what does this mean for you? If you already have an application in with us for CARES Act SBA business financing, please be assured that you have a secure place in our queue.

We have received hundreds of emails and calls from business owners confused about the SBA relief funding options available. One of the most prevalent questions we have been ask is, “What is the difference between the SBA EIDL and CARES Act program, and which is better?” Business owners also want to know what loan terms are available and if they can apply for both types of relief funding. Outlined below, and to the the best of our ability based on the information available, are the differences between the two programs and the broad strokes of what each entails

Last night the Senate passed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), that should it become law (the House will vote on Friday), would expand allowable uses of 7(a) loans to include payroll support (including paid sick or medical leave), employee salaries, mortgage payments, insurance premiums and any other debt obligations.

We’re proud to announce our recent Scotsman Guide March Featured Done Deal! We provided a $768,000 multifamily loan via our small balance real estate program. We are actively lending, and our remote staff is ready to help you! We charge no upfront fees, applying with us won’t affect your credit and takes only about 1 to 5 minutes.   

South End Capital, a nationwide, non-conforming lender providing commercial real estate mortgages, subprime SBA loans, and business financing, has announced its second restaurant loan funding in less than a week.

“Yesterday, while we were delivering $917,000 to an Ohio restaurant in great need of financing, we received news that 3 large national business lenders had terminated lending, and dozens more have put funding on hold” said Noah Grayson, President of South End Capital. “I founded South End Capital in 2009 to help small business owners access capital in times just like these. Our lights are on and we are actively lending.”

$431K refinanced the restaurant’s mortgage, $225K paid off existing SBA loans, $156K paid off a 19.7% business loan + other debt, and the balance was for working capital and closing costs. We delivered a 6% rate, 25 year am., and 100% LTC.

What if I said you could get a loan to buy a self-storage facility in three to six weeks, start to finish, even if you have credit issues, with more flexible terms than you could get from a bank? If you don’t know much about nonconforming loans, you might say I’m crazy—crazy like a fox, that is.

Yesterday, the Congressional Small Business Task Force unveiled a $300B Emergency Coronavirus Relief Package as part of the Keeping Workers Paid and Employed Act, Division A of the CARES Act, This includes:

We provided $400K to refinance the borrower’s existing restaurant, and $1.26M to purchase a vacant restaurant, 8-room motel, and single family home to start a new business. $125K of working capital was also funded. A 92.8% LTC, 6% rate, and 25-year amortization were delivered.

Yesterday the SBA released updated, and more relaxed criteria for Disaster Assistance Loans. The SBA will provide this funding directly, not through us or any other lenders. Your welfare is very important to us, so we wanted to make sure you had this information. 

“Over the last week we’ve been contacted by numerous small business owners seeking disaster relief loans, because they have experienced a sudden decline in their revenue due to rapidly deteriorating economic conditions brought on by the coronavirus” said Noah Grayson, President of South End Capital. “I founded South End Capital in 2009 during the midst of the Great Recession, and developed our loan programs to accommodate small business owners and real estate investors who need affordable access to capital in times just like these.”

We closed a 6.5% rate, 10-year fixed, 25-year amortized, 74% LTV investment property loan. Barriers included collateral located in Alaska, low documentation underwriting, and a high LTV.

Below area selection of subprime SBA loans we recently closed. Also, we’re extending our underwriting fee waiver indefinitely. Apply with no risk and pay $0 until you receive a loan commitment (or a decline if ineligible).

This 7.5% rate, 10 year term loan, had no prepay penalty, consolidated ~$4M of debt, and provided ~$1M for working capital and equipment. There was no real estate collateral except a small 3rd lien filed on the borrower’s home. This business had a $600K+ 2018 loss, and borrower credit was <650.