What is a Disaster Loan?
Wefunder developed Disaster Loans for the coronavirus crisis. The intention was to help save small businesses by allowing their customers to give a very low interest loan, with flexible repayment options based on revenues.
The Disaster Loan is best for small businesses with a passionate customer base who wants to support the companies they love during a crisis.
Like a mortgage, a disaster loan has an interest rate. However, unlike a mortgage, there is no fixed repayment schedule - the time it takes to pay back is an unknown, as it is based on the revenues of the business.
To preview a sample, download the Revenue Loan Agreement. By default, the following terms are customizable in our template:
- Interest rate. The annual return investors will receive by the time the loan is paid back.
- % of Revenue Shared. This is the percentage of revenue that is shared until the loan is paid back.