Designed by the Small Business Administration, the 1201 borrower payment form reports and submits payments for SBA-serviced loans such as EIDL and COVID-19 Economic Injury Disaster Loans (EIDL). The form can be easily filled out and submitted using a web-based application. Most small business owners consider a variety of funding options at some point. One option is the Small Business Administration (SBA).
SBA does not actually lend the money to businesses, but they do guarantee a portion of a loan from a private lender, such as a bank. This helps reduce the risk for lenders and encourages them to provide loans to smaller businesses that might otherwise not get them. The SBA charges an upfront fee for this service and a yearly servicing fee on the guaranteed portion of the outstanding balance. These fees can be expensive, so it’s important to research the different lenders before choosing one.
You can make a payment on your SBA loan by using the online 1201 borrower payment form. The form will ask for your 10-digit SBA loan number (not the application number) and the amount you want to pay as a one-time or recurring payment.
How Do I Check My SBA Loan Balance?
SBA does not lend money directly to small business owners but instead offers a government guarantee on loans made by approved financial institutions, such as banks. This reduces the risk for lenders and allows them to offer more flexible terms, such as a lower interest rate.
To qualify for an SBA loan, you must have strong personal and business credit scores and solid assets (like accounts receivable and commercial real estate) to support your request loan amount. The lender will also dig deeper into your business finances and may request third-party reports or visit your business storefront to assess your situation.
If you receive a bill from an SBA loan that you never applied for, it’s likely that criminals used your personal or business information to steal your identity. Report it immediately to the SBA to prevent future fraud. Also, check out resources like LendingTree to get an instant list of loan options. This can help you identify the type of loan that may work best for your small business needs.