Merchants Bank of Indiana’s SBA Group Provides Needed Funds to National Hotel Franchise, Multiple Liquor Stores

The U.S. Small Business Administration (SBA) closed its Paycheck Protection Program (PPP) to new loan applications at the end of May and ended its Restaurant Revitalization Fund (RRF) grant program in early July, diminishing the options that small business owners have for relief.

American small businesses have been through many challenges over the last year and a half. Whether looking for short-term funds due to continued issues caused by COVID-19, or needing capital to get a new business off the ground, Merchants Bank of Indiana (MBI) is proud to provide financial support to all types of small business owners.

As your dedicated and authorized lender, our team provides a number of financial assistance programs for small businesses that have been specifically designed to meet your key financing needs. This summer, our SBA Group has closed on multiple loans for small businesses like yours. Recently, we provided a $2.3 million, 25-year SBA 7(a) loan for the acquisition of an existing worldwide hotel franchise location in Indiana. This allowed our client to obtain the funds to purchase the hotel as well as have additional funds on hand for the franchise fee and working capital.

Additionally, for another small business owner, we secured more than $1.2 million in SBA 7(a) financing as a debt refinance of a previous loan for four liquor stores in Indiana. The loan also provides working capital that will be used to maintain daily operations of the business, including the purchase of supplies and inventory.

The 7(a) loan program is the SBA’s primary program for providing financial assistance to small businesses. Right now, all borrowers with approved 7(a) loans are eligible for three months of payment relief up to $9,000 a month. The SBA is also waiving all insurance guarantee fees, which typically range from 3-3.75% for the guaranteed portion of the loan, which can lead to big savings down the line.

Aside from the 7(a) programs, the SBA has also enhanced the guarantee percentages and fee waivers on their other programs right now. Small businesses considering these programs must take advantage before Sept. 30. Click here to learn more.

If you have debt financing, working capital, equity financing or other needs, let Merchants Bank help identify your options and provide the financing you are looking for.

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