COVID-19 Small Business Recovery

Your options for small business recovery from the COVID-19 crisis.

Our thoughts go out to the individuals, families, and businesses that have been impacted by these extraordinary events.  As a locally owned community bank, First Southwest Bank embraces our core values of People & Culture First, Lead Fresh Ideas, and Make A Difference. These values continue to guide us as we navigate uncertainty surrounding COVID-19.  

As an SBA Preferred and Express Lender, we are still accepting PPP loan applications through August 8, 2020.

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Please review this guide on how to calculate maximum loan amount, before applying.


FSWB Bird Icon  SBA LOAN OPTIONS

 

Paycheck Protection Program

We are still accepting PPP loan applications through August 8, 2020.​

The Paycheck Protection Program prioritizes small businesses and the millions of Americans employed by these businesses by offering forgivable loans with funds going toward job retention and other expenses.

Who is Eligible? Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.

Helpful Resources:

SBA 7(a) Loans

Standard 7(a) Loan

Maximum loan amount: $5 million
Maximum SBA guarantee: 85% for loans up to $150,000 and 75% for loans greater than $150,000
Interest Rate: Lenders and borrowers can negotiate the interest rate, but it may not exceed the SBA maximum
Eligibility Decision: By the SBA. Qualified lenders may be granted delegated authority (PLP) to make eligibility determinations without SBA review
Revolving lines of credit: Up to 10 years (Permitted only under CAPLines submission. See below)
Forms: SBA Form 1919 and SBA Form 1920 are required for every loan (other SBA Forms may be required)
Collateral: Lenders are not required to take collateral for loans up to $25,000. For loans in excess of $350,000, the SBA requires that the lender collateralize the loan to the maximum extent possible up to the loan amount. If business fixed assets do not “fully secure” the loan the lender may include trading assets (using 10% of current book value for the calculation), and must take available equity in the personal real estate (residential and investment) of the principals as collateral.
Credit decision: By the SBA. Qualified lenders may be granted delegated authority (PLP) to make credit decisions without SBA review.


7(a) Small Loan

Maximum loan amount: $350,000
Maximum SBA guarantee: 85% for loans up to $150,000 and 75% for loans greater than $150,000
Interest Rate: Lenders and borrowers can negotiate the interest rate, but it may not exceed the SBA maximum
Eligibility Decision: By the SBA. Qualified lenders may be granted delegated authority (PLP) to make eligibility determinations without SBA review
Forms: SBA Form 1919 and SBA Form 1920 are required for every loan (other SBA Forms may be required)
Collateral: Lenders are not required to take collateral for loans up to $25,000. For loans over $25,000, up to and including $350,000, the lender must follow the collateral policies and procedures that it has established and implemented for its similarly-sized non-SBA-guaranteed commercial loans, but at a minimum the lender must take a first lien on assets financed with loan proceeds and lender must take a lien on all of the applicant’s fixed assets including real estate. Lender is not required to take a lien against applicant’s real estate when the equity is less than 25% of the fair market value. The lender may limit the lien taken against real estate to the loan amount.
Credit decision: By the SBA. Qualified lenders may be granted delegated authority (PLP) to make credit decisions without SBA review.
 

SBA Express Loans

The SBA Express program features an accelerated turnaround time for SBA review. 

Maximum loan amount: $350,000
Maximum SBA guarantee: 50%
Interest Rate: Lenders and borrowers can negotiate the interest rate, but it may not exceed the SBA maximum
Eligibility Decision: Made by the lender
Revolving lines of credit: Up to seven years with maturity extensions permitted at the outset
Forms: Lender primarily uses own forms and procedures, plus SBA Form 1919
Collateral: Lenders are not required to take collateral for loans up to $25,000. May use their existing collateral policy for loans over $25,000 up to $350,000.
Credit decision: Made by the lender
Purchase: Lender may request expedited SBA purchase on small loans or in situations where liquidation may be delayed