Right before the holidays Congress passed a new stimulus bill that included some relief for small businesses. In this bill they gave more funds to The Unites States Small Business Administration (SBA) to extend CARES Act payments for three months up to $9,000.00 per month. These payments will begin with the February 1st, 2021 payment and end with the April 1st, 2021 payment. For loans that have a monthly payment above $9,000.00 we believe the difference will be added to the back end of the loan.
In addition, this bill gave an additional five months of payments to industries hit hardest by COVID-19. Your loan might qualify for this additional five months, and if it does these payments would begin May 1st, 2021 and end September 30, 2021. The 504 loans that qualify are those in the hardest-hit sectors, as measured by the severity of sector-wide job losses since the start of the pandemic, including all those belong to 2- and 3-digit NAICS categories with the most severe job losses since the start of the pandemic: accommodation and food services (72); arts, entertainment, and recreation (71); educational services (61); mining and logging (213); apparel (315); clothing and clothing accessory stores (448); sporting goods, hobby, book, and music stores (451); air transportation (481); transit and ground passenger transportation (485); scenic and sightseeing transportation (487); publishing industries, except Internet (511); motion picture and sound recording industries (512); broadcasting, except Internet (515); rental and leasing services (532); and personal and laundry services (812)
Right now, SBA is still writing the regulations around this extension and we are waiting for more clarification from them.
Please contact us if you have any questions: