New Covid Relief/Stimulus Bill
In a new bill passed by Congress on 12/21/20, the SBA 504 loan program will have some long awaited changes to help small businesses throughout the United States.
Specifically we will be implementing the following as soon as SBA establishes the rules.
-
The ½ point guarantee/participation fee is waived through Sep 30 2021
-
The 1.5% CDC fee is waived through Sept 30 2021
-
The payment by SBA of the principal and interest on 504 loan payments will start again in February 2021 up to $9,000 per month (more details later) for three months with the possibility of a five month extension
-
The debt refi program will have a major overhaul with the following changes:
-
Govt debt eligible to be refinanced (7a)
-
Loan can be 6 months old instead of 2 years
-
Elimination of requirement that the loan be current for the preceding 12 months
-
All existing jobs may be considered jobs retained to qualify for jobs requirement
5. The debt eligible for refinance on a refi expansion project is now 100% instead of 50%
For some of you this will make perfect sense, for others we will be providing more info soon….
If you have question please give us a call at (909) 792-3803 or visit us online at https://www.efc504.com