2021 SBA Economic Stimulus Update

The federal government recently passed legislation that enhances the Small Business Administration (SBA) Loan program for most business owners.

Here is what we know at this time that may be of benefit to your business, funding is available up to $5 million for most business needs.

Effective Immediately

·      Up to 90% guaranty on SBA 7a loans. 

·      $0.00 SBA Guaranty fee for the borrower

·      SBA express maximum increased to $1MM (and then permanently to $500K after 10/1/21

·      Note: Fee relief and 90% guaranty are subject to an appropriation, and could run out before 10/1/21.

§ Starting February 1:

·      6 months of Principal and Interest payments paid for by the SBA, up to $9,000 per month. 

·      Subsidy payments are in play until the money runs out. The Bill allows the Administrator to change the number of months and they very well could look at the appropriation cap, do some math and decide it cannot be six months (or they can also reduce the additional subsidy existing borrowers are receiving).

·      This is limited to one loan