While the FATCATS get direct checks in the hundreds of millions, small businesses are not so lucky.
Small businesses must apply for SBA loans at high interest rates and PERSONALLY GUARANTEE the loan. Do fatcat corporations and BANKS have to have their CEO personally guarantee THEIR bailout? Heck no.
Here are more details from the good ol SBA on what their “loan deferment” means to you:
- Interest will continue to accrue on the loan.
- 1201 monthly payment notices will continue to be mailed out which will reflect the loan is deferred and no payment is due.
- The deferment will NOT cancel any established Preauthorized Debit (PAD) or recurring payments on your loan. Borrowers that have established a PAD through Pay.Gov or an OnLine Bill Pay Service are responsible for canceling these recurring payments. Borrowers that had SBA establish a PAD through Pay.gov will have to contact their SBA servicing office to cancel the PAD.
- Borrowers preferring to continue making regular payments during the deferment period may continue remitting payments during the deferment period. SBA will apply those payments normally as if there was no deferment.
- After this automatic deferment period, borrowers will be required to resume making regular principal and interest payments. Borrowers that cancelled recurring payments will need to reestablish the recurring payment.
It’s a sad state of affairs. The shafting of the regular American continues.
Then there’s the Economic Injury Disaster Loan. It’s unsecured only up to 25,000 otherwise you have to pledge something like your house. The interest rate? 2.5% What was the interest rate to the fatcat bailouts? ZERO.