The ongoing coronavirus pandemic has played a significant role in the lives of most. But perhaps none so strongly as the small business owners of our country. Through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the government pledged to support struggling Americans as we attempt to recover from the pandemic. As part of the CARES Act, the Small Business Administration (SBA) began providing loan payment relief to those struggling to keep up with their SBA loan payments.
Originally released as part of the CARES Act, “the SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020.” This ruling has since been extended on an ongoing basis. Between February 1 and September 30, 2021, all loans approved and fully funded will be eligible for payment support from the SBA. SBA will cover the first 6 months of payments up to a maximum of $9,000 per month.
This update comes as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues (Economic Aid) Act, which former president, Donald Trump, signed on December 27, 2020. The update extends the previously mentioned loan relief program for loans approved from February 1 to September 30, 2021. SBA will make the first 6 months of payments up to a maximum of $9,000 per month.
In addition to the deferral of payments of principal and interest on new and existing SBA 7(a), 504, and Microloans, the newly signed Act also temporarily eliminates fees for the 504 loan program and provides favorable terms for refinancing loans. While there is talk of the SBA extending waived loan fees across a broader spectrum of loan types, this is currently speculation and not concrete.
If your business is in need of a loan to support you through the ongoing Coronavirus pandemic, Innovative Capital may be able to assist you. Our loan officers have dedicated partnerships with various private investors and traditional banks and can help you make sure you get the best deal possible. We’re so confident in our ability to find you the best deal on the market, that you don’t pay a dime unless you go through with one of the deals we present you with. If you’re interested in learning more and taking advantage of the SBA’s current offerings, give us a call or visit our site for a free consultation today.