In the age of the coronavirus, many small and large businesses have had to shut down. This has led many people with SBA loans into a financial struggle to pay back the loan within a sufficient period of time. One alternative if you ever find yourself struggling to repay the loan is to seek SBA loan forgiveness. However, there are certain requirements you have to meet to accomplish this. If you ever have any financial concerns or issues related to bankruptcy, then feel free to contact one of our Tennessee bankruptcy lawyers for guidance.
Quick Overview of Tennessee SBA Loans
Going through a quick overview of Tennessee SBA loans can help if you are considering applying for an SBA loan or have questions about your SBA loan. Applying for an SBA loan means you want a loan that is most effective for starting a small business. SBA loans are specifically designed to help smaller businesses by offering lower rates, down payments, and fees.
However, you cannot obtain an SBA loan without first meeting the requirements. Your small business must reside in the United States, have a legitimate need for credit, and be designed to make profits. Your company must also qualify as a small business. In other words, this means your company needs to have a certain amount of workers and net worth.
You must also prove in some way that you will be able to pay back the SBA loan. Part of this involves having a strong business plan that is convincing enough to motivate the lender to grant you an SBA loan.
Having Your SBA Loan Forgiven in Tennessee
In situations where you find yourself unable to pay back your SBA loan, whether this is because of an unexpected financial emergency or the coronavirus shutdowns, do not panic. There are options for repayment, one of them being SBA loan forgiveness in Tennessee. SBA loan forgiveness means you will no longer have to pay back your SBA loan at all.
Qualifying for SBA loan forgiveness is the challenging part. To do this, you have to make sure the loan was only used for expenses related to your small business like paychecks, utility costs, and office space rent. You could qualify if your small business was affected by the coronavirus and your small business either involves:
- Independent contractors
- Self-employed people
- Veterans organizations with certain other requirements
- Meets SBA size requirements
You will also need to follow instructions on performing calculations under the CARES Act to render your loan forgiveness eligible or not. This process can sometimes be complicated. If you have any questions, be sure to ask one of our attorneys.
Bankruptcy Attorney in Chattanooga, TN
Seeking loan forgiveness in any form can be tedious and sometimes confusing. Try reaching out to our lawyers in Chattanooga, Tennessee, and North Georgia if you find yourself struggling financially or on the brink of bankruptcy. Call Tom Bible Law today to speak with a Bankruptcy attorney in Tennessee at (423) 424-3116 for a free consultation. Our legal team of Tennessee bankruptcy lawyers is located in Chattanooga, Kingsport, and Tullahoma.