New SBA loan available for small businesses in Idaho affected by coronavirus
The CARL loan is available until September 27.
BOISE, Idaho – From state programs to federal loans and everything in between, businesses across the country have taken whatever financial lifeline they can to stay afloat. There is now a new option.
The Community Benefits Restoration Loan Program (CARL) is a new Small Business Administration (SBA) program available to help small businesses during the COVID-19 pandemic.
“The CARL loan can be used for several things, whereas the PPP [Paycheck Protection Program] was very specific, mainly to keep employees on your payroll – to pay the payroll, ”said David Glaser, president of MoFi, a nonprofit community lender serving Idaho.
According to Glaser, MoFi is one of 100 lenders nationwide where people can apply for the CARL loan.
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- The maximum loan amount is $ 250,000
- The maximum interest rate is 9% and there is no setup fee
- Payments are canceled for the first six months
But there is a hurdle that some companies may have to jump over.
“There is no minimum personal credit score, but there is the SBA credit system and you have to achieve a score of 140 or higher,” Glaser said. Idaho State Bank and Credit Union to find solutions for people they cannot lend to. “
Over the weekend, more than 30 companies applied for the CARL loan through MoFi.
“There is 10 days between request and funding because we know people need the money so we’re happy to act quickly and provide solutions,” Glaser said. “The companies we help have weathered the storm so far, but in order to adjust their business model to adapt to the COVID world, they need additional capital to make it happen.”
The CARL loan is available until September 27, 2020.
It comes as the paycheck protection program loan expired earlier this month.
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