SBA Wants to lend me $25k

[oftpiste]

I applied for this months ago in early COVID, got approved then put it on ice as I didn't want to be saddled with another payment outgoing in a year's time. They just reached out and still want to send me a check. I don't need it but wouldn't mind having a little cushion like that if I could find a place to park it and have it pay for itself while I don't (probably) use it.

Terms are 3.75%, no payments or interest for a year. Think it's a 10 year amortization. Unlike PPP there doesn't seem to be a method to have it forgiven by meeting some set of criteria.

Beyond real estate, investing vexes me. Yes, I'm a maroon. Is there some instrument that would make this work? Or is it just a dumb idea?

[Bunion 2020]

I would be remiss to not suggest the always popular Hookers and Blow.

[Art Shirk]

You could certainly get creative with some extra peso flow laying around, but there are "ineligible purposes" for SBA loans that you may want to keep in mind, namely not using it for your business per se.

But Bunion is spot on. Invest in nose beers and loose women.

[Timberridge]

Perhaps you could give it to the moderators? I think SFB is looking for donations.

[Benny Profane]

Bargain down to 1.5, like the big boys. 3.5, you're just treading water.

[BobMc]

They offered me the same deal with more cash, it’s cheap money, I took it. I have equipment that needs replacing and plan on some remodeling. I don’t really see a downfall.

[natty dread]

25k is a good number—at the max of 30k, you need to put your business assets up as collateral (no lien though), not so with 25k. Not that that matters if you intend to make the 130/month payments. About as cheap money as there is, why not?

[SorryBro]

You could invest it in LEGO futures. (too late!)

Seems like cheap money to me, although I don't own a business, so I may be talking out of my ass.

[PB]

Wait .... you said you didn't need it?? How about not taking it so some one who DOES need it gets it?

[Timberridge]

Bargain down to 1.5, like the big boys. 3.5, you're just treading water.

The S in SBA is for small Benny.

[Benny Profane]

Think big, baby. Or go home.

[oftpiste]

You could invest it in LEGO futures. (too late!)

Seems like cheap money to me, although I don't own a business, so I may be talking out of my ass.

Right? I don't even like to think of the LEGO investment! Hope they're being well enjoyed.

It does seem like cheap money, but not that cheap. To address a couple of things....

I don't need it as in I won't have to sell everything to survive if I don't get it, but it's not to say it wouldn't be very useful and a welcome cushion post-divorce economic and COVID impact. My impression is that I'm not tying it up where someone else could use it.

I had decided months ago not to take it and thought the application was expired and had forgotten about it until they reached out this week to urge me once again to take it.

All that said, the latest word from SBA is that since I have a different bank account than I did when I applied I essentially have to re-apply. Not going to bother.

Seems a little odd and for some reason I have a voice in my head telling me the guy that is reaching out may not be legit, SBA email address notwithstanding.