New Covid Relief/Stimulus Bill

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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.

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Specifically we will be implementing the following as soon as SBA establishes the rules.

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1. The ½ point guarantee/participation fee is waived through Sep 30 2021

2. The 1.5% CDC fee is waived through Sept 30 2021

3. 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

4. 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%

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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